Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S14S17GROUP1 en-us 2016-04-17 12:40:33 UTC 2017-03-15 10:49:50 UTC hello@padlet.com News Article 1  lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170469 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170469 Chat Box lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170470 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170470 Conclusion lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170471 Wayne: The low economic growth in Europe/America and change preference of coffee beans in Asia caused a decrease in demand. The unexpected great weather caused the farmers to have a huge yield. Due to the low demand and high supply,  the price of the coffee beans in Brazil would fall drastically.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170471 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170472 Chao Zhou: The surplus 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 rise in quantity from Q1 to Q2.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170472 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/16S14S17GROUP1/wish/106170473 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 

Kevin: At original price P1, quantity supplied is more than quantity demanded, resulting in a surplus of coffee beans in the market. This surplus exerts a downwards pressure on price of coffee beans as quantity supplied decreases while quantity demanded increases. The price of coffee beans will stop decreasing at new price P2, where quantity supplied equals quantity demanded. At new price P2, the equilibrium price of coffee beans has decreased while the equilibrium quantity has decreased from Q1 to Q2.

Adrian: Due to leftward/rightward shift of demand/supply curves respectively, there is an excess at price P1 as supply heavily outweighs demand. Market forces apply a downward pressure on the market. Suppliers try to clear the excess stock and prices fall until new market equilibrium is achieved at P2Q2

Kevin: Apart from the extent of shift of demand being greater than supply, the extent of shift of supply can also be greater than demand. In this scenario, the new equilibrium will lead to a fall in price and rise in quantity. In the scenario where both curves shift by the same extent, prices will fall while quantity remains the same. In all 3 scenarios, the effect on price will fall while the effect on quantity will be indeterminate. However, the case where the extent of shift of demand being greater than supply will occur far more likely in the market.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170473 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170474 Adrian: Due to a decrease in demand for Arabica beans from Europe and America (due to low economic growth) Demand curve shifts to the left. Where demand is rising, however, (Asia) drinkers prefer the Robusta coffee bean over the arabica. Brazillian farmers typically produce arabica and are losing out

Unexpected good weather in Brazil has led to a very large harvest. This results in a rightwards shift of the supply curve.

]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170474 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/16S14S17GROUP1/wish/106170475 Wayne: Due to the low economic growth, the income of the consumers would decrease, their purchasing power would hence decrease and the demand for Arabic beans from Europe and America decreases. Further more, the market in Asia demand more of Robusta, a cheaper alternative than the coffee bean arabica that is grown in Brazil. The demand would then decreases, causing a leftward shift in the demand curve.

Also, Brazillian farmers experienced a very large harvest due to the unexpected good weather. Thus supply increases and hence the supply curve would shift to the right.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170475 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170476 Chao Zhou: 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. 

]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170476 Introduction lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170477 Explain market mechanism:
Chao Zhou: Market mechanism works through the interaction of the market forces of demand and supply to determine the equilibrium price and output.

Define demand:
Kevin: Demand is defined as the amount of coffee beans that consumers are willing and able to purchase in a given time period at various prices.

Define supply:
Kevin: Supply is defined as the amount of coffee beans that producers are willing and able to sell in a given time period at various prices.

]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170477 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170478 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/16S14S17GROUP1/wish/106170478 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170479 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/16S14S17GROUP1/wish/106170479 Group name: lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170480 Please write out the names of the members in the group.
1. Adrian Teh
2. Kevin Kor
3. Lim Chao Zhou
4. Chan Ler, Wayne
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170480 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170481 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170481 News Article lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170482 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S14S17GROUP1/wish/106170482