Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S04GROUP3 en-us 2016-04-06 00:47:44 UTC 2023-02-18 12:13:31 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260205 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260205 News Article lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260206 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260206 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260207 Article 1: First, the traditional markets for their wares are saturated. Growth in Europe, America and Japan, which between them glug over half the world's coffee, is flat. Second, in places like China, Indonesia and Brazil itself, where coffee is an affordable luxury for the middle class, the market is growing by around 5% a year. But these drinkers are filling their pots with cheaper robusta beans-what Kona Haque of Macquarie dubs the "emerging-market coffee".
Strong demand for entry-level coffee-40% of the world's coffee crop is now robusta beans
Wages in Brazil and Colombia are rising fast and production costs are above prices.

Article 2: production of coffee, and of cheaper robusta beans in particular, is booming. Vietnam has gone from growing almost nothing a decade ago to producing 25m bags of robusta beans a year today. The result is an oversupply of coffee
Nestlé and Kraft. They have taken to blending cheaper robusta beans into their products to maintain their margins, causing the price of robusta to fall more slowly than that of arabica. In the developing countries such as China, Indonesia and Brazil, meanwhile, where the emerging middle classes are discovering the joys of coffee and the market is growing by around 5% a year, robusta is the bean of choice
So even while arabica beans fetch low prices on commodity markets, the price of the fanciest beans is going up]]> 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260207 Group name: lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260208 Please write out the names of the members in the group.
1.Foo Sek Yee
2.Anisa
3.Kuan Hsuan
4.Rafael
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260208 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260209 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/16S04GROUP3/wish/104260209 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260210 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/16S04GROUP3/wish/104260210 Introduction lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260211 Explain market mechanism:
The market mechanism works through the interaction of the market forces of demand and supply to determine the equilibrium price and quantity.

Define demand:
Demand is the amount of goods and services consumers are willing and able to purchase in a given time period.

Define supply:
Supply is the amount of goods and services producers are willing and able to produce in a given time period. 





]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260211 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260212 At initial price level P1, quantity supplied is more than quantity demand.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260212 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/16S04GROUP3/wish/104260213
The decrease in the amount of government subsidies will decrease the profit margin of the coffee bean producers, assuming their revenue remains constant. This means that they will be less willing and able to produce coffee beans at each and every price level. As the government subsidies decrease, their cost of production increases and causes their profit margin to drop, assuming revenue remains constant. This will cause the supply of coffee beans to decrease, ceteris paribus.

The increase in wages of the workers in the coffee plantation is a form of increase in cost of factor input for the producers in Brazil. Due to coffee being an extremely labour intensive crop, the increase in wages of these workers will cause a very high increase in the cost of factor input for the producers. This will hence decrease their profit margin, assuming their revenue remains constant. This will cause the supply of coffee beans to decrease, ceteris paribus. 

Overall, the two supply factors will cause the supply curve to shift to the left. 

The rise in popularity of cheaper robusta beans produced in Vietnam will lead to a decrease in the demand of coffee beans from Brazil. This is due to customers switching over to other alternatives of coffee beans that are cheaper and more affordable. As the customers switch to other alternatives of coffee beans, the demand for coffee beans in brazil will decrease, ceteris paribus. This causes a leftward shift in the demand curve.

Factors:
Government Policies not sufficient for farmers to produce coffee beans
Coffee is a labour-intensive crop
Farmers who grew the beans are specialist 'who know nothing else'
The rise in popularity of the cheaper alternative robusta beans also produced by Vietnam

              ]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260213 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260214 Both supply and demand decreases, causing both curves to shift to the left. However, the decrease in demand will be much more significant as people throughout the world begin to switch over to other cheaper forms of coffee beans, causing the demand to significantly drop. This will mean that the demand for coffee beans will decrease much more than the supply, causing the demand curve to shift the left more than the supply curve. 

]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260214 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/16S04GROUP3/wish/104260215 At initial price level P1, quantity supplied is more than quantity demand. This leads to a surplus, and creates a downward pressure in price. As price falls, quantity supplied will decrease and quantity demanded will increase. ]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260215 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260216 This will continue to happen until a new equilibrium level, P2, is achieved, where Qd=Qs, at a lower price level and higher/lower quantity.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260216 Conclusion lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260217 In conclusion, the greater decrease in demand of coffee beans than the decrease in supply will cause a decrease in price of coffee beans in brazil to decrease. The decrease in demand and supply will reinforce one another to cause a significant decrease in quantity. However, if the supply of coffee had decreased more than the demand, the prices of coffee beans might very well have increas]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S04GROUP3/wish/104260217 Chat Box lee_xueting https://padlet.com/lee_xueting/16S04GROUP3/wish/104260218 Ms Lee: Hi
guys finish alrd u guys just have to draw the diagram and post it pls thanks
no problem

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