Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S16GROUP3 en-us 2016-04-06 00:25:38 UTC 2017-03-15 10:44:07 UTC hello@padlet.com Chat Box lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257849 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257849 Conclusion lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257850 The fall in demand and increase in supply reinforced each other to cause a large decrease in equilibrium price. The greater the fall in demand and increase in supply, the more significant the fall in price P. However the effect on equilibrium quantity is indeterminate and depends on the relative extent of the fall in demand and rise in supply. If fall in demand exceeds rise of supply, quantity falls. If rise in supply exceeds fall in demand, quantity rises.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257850 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257851 At the final equilibrium E2, the price decreased largely from P1 to P2 and overall quantity decreased slightly from Q1 to Q2.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257851 Body: Using the market adjustment process, explain how the shift(s) changes the equilibrium price and quantity (Explanation of diagram): lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257852 When demand decreases and supply increases, there is a surplus of QsQd at the original price P1. This exerts a downward pressure on the price, where demand increases and supply decreases until the the new equilibrium at E2, with price P2 and quantity Q2. 

(I drew the diagram but couldn't upload it)]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257852 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257853 The demand falls more than the increase in supply]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257853 Body: Identify and explain whether the factor/event shifts the demand or supply curve. (2 Demand + 1 Supply or 2 Supply + 1 Demand) lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257854 The price of substitutes, which are robusta coffee beans, are relatively cheaper compared to the more luxurious arabica coffee beans, because of the increase in production of robusta coffee beans in vietnam. Thus when the price of substitutes decreases, the demand for arabica beans decreases, ceteris paribus.

When there is a recession in developed countries such as Brazil, consumer's income falls, which results in the fall of purchasing power. Hence they would prefer to purchase inferior goods such as robusta coffee beans, which decreases the demand for arabica beans.

In response to the high prices of 2011 Brazilian farmers invested heavily in new acreage and improved yields with better husbandry and more fertiliser. Futhermore, Vietnam has gone from growing almost nothing a decade ago to producing 25m bags of robusta beans a year today. Hence, there  is an oversupply of coffee.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257854 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257855 The initial equilibrium is where the original demand and supply curve intersect, with the original price of P1. ]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257855 Introduction lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257856 The fall in price of coffee beans in Brazil can be explained by the fall in demand for arabica beans and the increase in supply of beans.

The factors that shifts demand are the price of substitutes and recession in developed countries.

The Factor that shifts supply is the boom in coffee bean production.]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257856 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257857 Dear Students,

Welcome to Home-Based Learning 2016!

By now, you should have the list of the team members in your group. Each team will analyse 2 articles below to identify 3 evidence/information (2 Demand + 1 Supply or 2 Supply + 1 Demand factors)  to answer the following essay question:

a) With reference to the 2 news articles, explain the fall in prices of coffee beans in Brazil.

To discuss the answers with your group members, double click anywhere on the wall and a virtual "sticky note" will appear at the top. From, enter your name, then you can use the "sticky note" to "chat" with each other. 

For example, Miss Lee: I don't think that is a non-price factor that affects demand. Please remember to write your name before the statement :) 

Lastly, please identify these non-price determinants of demand & supply by quoting the relevant phrases from the article. 

For example, as stated in article 1, "the recession in Europe has hit demand". After quoting the evidence for the article please proceed to explain how this non-price factor affects demand or supply with economic rigour. 

I have provided some scaffolding statements to guide you in your essay development. Address each statement by writing the essay segment in the respective sticky note. Press the pencil button to write the respective essay segment.

]]> 2016-04-04 06:06:48 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257857 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257858 Objective - Students will be able to identify and explain how the demand and supply factors affect the market for coffee beans.]]> 2016-04-04 06:04:45 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257858 Group name: lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257859 Please write out the names of the members in the group.
1. Daryl
2.
3.
4.
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257859 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257860 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257860 News Article lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257861 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257861 News Article 1 lee_xueting https://padlet.com/lee_xueting/16S16GROUP3/wish/104257862 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S16GROUP3/wish/104257862