Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S20GROUP1 en-us 2016-04-06 00:33:03 UTC 2023-03-10 06:32:56 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258624 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258624 News Article lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258625 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258625 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258626 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258626 Group name: lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258627 Please write out the names of the members in the group.
1. Joveen 
2. Ying Xuan
3. Lynn 
4. Ying Chin
5. Shermaine]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258627 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258628 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/16S20GROUP1/wish/104258628 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258629 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/16S20GROUP1/wish/104258629 Introduction lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258630 The market for coffee beans is determined by the forces of its demand and supply.
Demand is defined as the amount of coffee beans that consumers are able and willing to purchases in a given period of time at various prices.
Supply is defined as the amount of coffee beans that producers are willing to offer for sale in a given period of time at various prices.



]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258630 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258631 At the initial equilibrium, the coffee bean market is in equilibrium at the intersection of demand (D1) and supply (S1) at equilibrium point E1, where price equals P1.

]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258631 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/16S20GROUP1/wish/104258632
According to the article, "The farmers are upset by falling prices: their beans now fetch around $106 a 60kg bag, a four-year low and less than half what they could get a couple of years ago." With changes in tastes and preferences, consumers switch away from arabica coffee beans to cheaper substitutes such as robusta. As such, demand will shift leftwards from D1 to D2, ceteris paribus.

Also, "Many Brazilian and Colombian farmers invested to boost production of arabica in response to the high prices of 2011, which has added to the oversupply and further depressed prices." This shows that the farmers have produced too much coffee beans resulting in a surplus, causing a rightward shift of supply curve from S1 to S2, certeris paribus.

Since the cost of inputs has risen, with coffee still largely picked by hand, and wages rising fast, the cost of production has increased. This results in producers earning lesser profit as compared to a unit produced previously, ceteris paribus. Hence, despite the increase in supply, the supply curve would shift by a smaller magnitude than the demand curve.



]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258632 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258633 Supply curve shifts rightwards from S1 to S2
Demand curve shifts leftwards from D1 to D2
Resulting in surplus of coffee beans, shift of demand curve is larger than that of the supply curve.]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258633 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/16S20GROUP1/wish/104258634 Initially, the market for coffee beans in in equilibrium at the intersection of demand (D1) and supply (S1) at equilibrium point E1. At the original price, a fall in demand and a rise in supply results in a surplus of QdQs. This would exert a downward pressure on the price. The quantity demanded will rise and the quantity supplied will fall until surplus is completely eliminated at E2. Both the new equilibrium price and quantity is lower at P2 and Q2 respectively.

]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258634 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258635 At the new equilibrium, the new equilibrium is lower at P2 and quantity is lower at Q2.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258635 Conclusion lee_xueting https://padlet.com/lee_xueting/16S20GROUP1/wish/104258636 Hence, a fall in demand and rise in supply for coffee beans will reinforce each other to result in a sharp decrease in price and quantity.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S20GROUP1/wish/104258636