Steepness of curves: 
- DD for coffee bean is elastic because coffee is a luxury gd 
- SS is inelastic: 
1. Low availability of substitutes "Prices for sugar cane, a potential alternative, are also low." 
2. Time period: "Aficionados' demand for the fanciest coffees, which fetch higher prices, is healthy, but for farmers to move upmarket takes time and expertise."

SS factor 1: Increase in COP - wages
Evidence: " For arabica growers, falling prices have been accompanied by rising costs: coffee is still largely picked by hand, and wages are rising fast in Brazil and Colombia."
Explain: The rise in cost of production in labour (wages) increases the unit COP thereby decreasing average COP. This decreases profit margin as producers are now less willing and able to supply coffee beans at each possible price. Thus, supply of coffee beans decreases, shifting supply curve leftwards from So to S1, ceteris paribus.

SS factor 2: Weather
Evidence: "the Central American countries where the finest coffee is grown, including Guatemala, Nicaragua and El Salvador, have been hit by leaf rust, which could wipe out 30% of this year's crop."
Explain: With poor weather, supply of coffee beans decreases, shifting supply curve to the left from So to S1, certeris paribus. 

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.