Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S14S17GROUP4 en-us 2016-04-17 12:40:36 UTC 2026-01-17 01:26:05 UTC hello@padlet.com News Article 1  lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170512 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170512 Conclusion lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170514 However, the explained case mentioned earlier is the more realistic one and representative of a real life scenario due to the analysis made.The leftward shift of the demand curve and the rightward shift of the supply curve will reinforce each other to result in a gentle increase in quantity.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170514 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170515 The new equilibrium is at E2, whereby price is P2 and quantity is Q2.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170515 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/16S14S17GROUP4/wish/106170516
Demand is defined as the amount of a good that consumers are able and willing to purchase in a given period of time at various prices.  

The initial demand curve is at D1 and supply curve at S1. This interaction gives the original price at P1 and Q1 at equilibrium E1. At original price, P1, quantity demanded was less than the quantity supplied by the amount QdQs. An excess develops. Price is thus pushed downwards to clear the excess. As price decreases, quantity demanded decreases and quantity supplied increases. The excess is gradually eliminated. Once the market price of P2 is achieved, the market is at the new equilibrium of E2. Overall, there is a fall in price from P1 to P2 and a fall in quantity from Q1 to Q2.

There are also 2 other possible scenarios. In the case where the supply curve shifts more than the demand curve, the new equilibrium will be a fall in price and a rise in quantity. In the situation of the constant shifting of the both curves, however, prices will still remain the same while quantity will fall. Hence, with reference to the 3 possible cases, the effect on quantity will be indeterminate and a fall in price. 


]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170516 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170517 The demand curve would shift more leftwards than the supply curve would shift rightwards. 

Although farmers are now equipped with better machinery that can produce more coffee beans per unit of price, they are unhappy with the price of one bag of coffee beans. Farmers are less willing to produce more coffee beans at this price for they feel that they are being underpaid. Thus, supply curve will only have a minimal shift, ceteris paribus.

On the other hand, companies that produces coffee blends for consumers are too hit by the recession, thus their purchasing power is stifled. They then resort to using cheaper beans in their blends such as those from Vietnam and purchase even lesser of Arabica coffee beans. For these companies are the bigger consumers of coffee beans,  their turn away from Arabica coffee beans will leave a great impact on the demand curve, causing it to shift leftwards by a large extent, ceteris paribus.]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170517 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/16S14S17GROUP4/wish/106170518

One factor that resulted in the increase in supply of coffee bean is the heavy investment by Brazilian farmers in new acreage and improved yields with better husbandry and more fertilizer, thus increasing productive capability. As acreage, husbandry and fertilizer are factors of production for coffee bean, this caused the amount of coffee bean harvested to increase within a given period of time, ceteris paribus. This will result in the increase in supply of coffee bean, shifting the supply curve rightwards from S1 to S2.

One factor that results in the decrease in demand for coffee bean in Brazil is because of close substitutes.With the production of cheaper robusta beans from Vietnam, it becomes a substitute to the arabica beans which make up the majority of coffee bean produced by Brazil.Hence Robusta bean and Arabica beans are in competitive demand.Serving almost the same function,more people are likely to purchase the cheaper Robusto bean . This will result in the decrease in demand for coffee bean in Brazil ,shifting the demand curve leftwards from D1 to D2.

Another factor that results in the decrease in the demand for coffee bean is the recession in Europe that results in lower purchasing power of people.Coffee bean is the factor of production of coffee powder that many use to make their drinks.As coffee powder is not a necessity,it is income-elastic.Hence when income decreases,the demand for coffee powder decrease alongside with the demand for coffee beans.This will result in the decrease in demand for coffee bean in Brazil, shifting the demand curve leftwards from D1 to D2.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170518 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170519 There is an original supply curve at S1 and demand curve at D1. At the equilibrium price E1, there is market price at P1 and a market quantity of Q1.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170519 Introduction lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170520 Explain market mechanism:
The price of coffee bean in Brazil is determined by the forces of demand and supply

Define demand:
The demand of coffee bean is the amount of coffee bean that consumers are able and willing to purchase in a given time period at various prices,ceteris paribus.

Define supply:
Supply of coffee bean is the amount of coffee bean that producers are able and willing to produce in a given period of time at various prices, ceteris paribus.


]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170520 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170521 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/16S14S17GROUP4/wish/106170521 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170522 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/16S14S17GROUP4/wish/106170522 Group name: lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170523 Please write out the names of the members in the group.
1.Hazel
2.Cassandra
3.Averil
4.Wei Ling]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170523 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170524 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170524 News Article lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170525 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S14S17GROUP4/wish/106170525