Coffee Supply And Demand Essay

951 words - 4 pages

Coffee Supply and Demand
Besides the high demand and cost for gasoline these days, coffee is considered the second most traded commodity on worldwide markets next to oil. "Coffee is grown in more than 50 countries in a band around the equator and provides a living for more than 20 million farmers. Altogether, up to 100 million people worldwide are involved in the growing, processing, trading and retailing of the product" (Spilling the Beans…, ). In 2001, coffee farmers and plantations produced over 15 billion pounds of coffee while the world market only bought 13 billion pounds. The overproduction in the coffee industry is not a usual thing and is one of the major reasons why prices vary ...view middle of the document...

Starbucks overall goal with this alliance is to buy 60 percent of its coffee under the standards agreed upon by 2007. "The agreement reflects the growing power of the premium coffee market and efforts to exploit it for the benefit of small farmers" (Lee, 2004).
When it comes to the supply, demand and price of coffee there are certain factors that can fluctuate these characters to rise or fall. Weather is one example that affects the consumption of coffee. People tend to drink more coffee in the winter rather than the summer due to the cold temperature, shorter days and the fact that it is harder to get going without a cup of coffee during the holidays. Starbucks has tried to avoid these dramatic drops in the summer by offering a variety of cold drinks and desserts however; during the summer these factors are considered more of a "want" compared to almost a "need" during the wintertime.
Another factor that directly affects coffee prices is the taxes and tariffs that the government imposes. In the same boat as cigarettes and alcohol, coffee is one of the highest taxed products in the United States. Just recently the tax on coffee went up to about 10 cents per cup, on top of all the tariffs that already are paid. In response to the increase, coffee drinkers all over the country reacted by protesting but coffee still remains highly taxed.
The amount of coffee drinkers during the last decade has gone up from 71 to 76 percent and the average cups of coffee per day have increased from 3 to 3.5 cups. Another factor to this increase in consumption is the aging of the baby boomers and their increasing spending power, creating a good customer base for the coffee shops. This of course, has a very positive effect of the demand on...

Other Papers Like Coffee Supply and Demand

Supply And Demand Essay

345 words - 2 pages Assignment #2: Supply and Demand Knowledge and Understanding (/4) 1) Explain in your own words the concepts of supply and demand. Communication (/5) 2) Our school cafeteria sells a very limited amount of healthy foods such as low fat wraps, fresh fruit and high fibre breads. Write a proper paragraph that explains how the forces of supply and demand interact to produce the right amount of goods (food) at the right price – the equilibrium

Supply and Demand Essay

920 words - 4 pages Petroleum Prices and Demand Abstract This week's simulation is centered on GoodLife Management. GoodLife Management is located in a town by the name of Atlantis, where the company rents two-bedroom apartments on a month-to-month basis. This paper will cover the simulation’s supply and demand for two bedroom apartments, the concepts of microeconomics and macroeconomics principles, the shifts in supply and demands, and how the equilibrium is

Supply And Demand

876 words - 4 pages Name: Professor: Institution: Date of Submission: The simulation concerns a supply and demand for two-bedroom rental apartments in Atlantis. There are several factors that affect demand and supply of the two-bedroom apartments leading to shift in both the demand and supply curves. One of the microeconomic principle in this simulation is the law of increasing opportunity cost because it states that production

Supply And Demand

491 words - 2 pages Supply and Demand Rasmussen College Author Note This paper is being submitted on August 18, 2013, for Donna Carignan’s B136/GEB1011 Introduction to Business course. Supply and Demand Consumer and producer expectations have a way of influencing customer perception of the price and taste climate of a business. These supply and demand factors can impact a business operation and affect its competitors. Supplies are assets until they

Supply And Demand - 509 words

509 words - 3 pages Supply And Demand In the business world, business owners are all concerned with supply and demand. From the large hamburger franchise to the local burger joint down the street, supply and demand effects everyone. Of course, supply and demand are affected by many different factors. In order to adequately show you how some factors affect both supply and demand, let's start off by picking a business to use for an example. I'll use the

Supply and Demand Simulation

564 words - 3 pages Supply and Demand Simulation Andrea Nelson ECO/365 May 12. 2014 Vilma Vallillee Supply and demand simulation From the University of Phoenix supply and demand simulation I identified a few microeconomic and macroeconomic principles. Monopoly and Maximizing revenue are two microeconomic concepts. Colander (2010) explains that microeconomics is “the study of individual choice, and how that choice is influenced by economic factors (p. 15

Supply and Demand

575 words - 3 pages categorized these principles or concepts as macroeconomic or microeconomic. Economic theory is divided into two parts: microeconomic theory and macroeconomic theory. Microeconomics is the study of individual choice, and how that choice is influenced by economic forces. In the simulation two principles of microeconomics were highlighted, Supply and demand. The demand curve shows the quantities of a particular good or service that buyers will be

Supply and Demand

731 words - 3 pages Supply and Demand Lisa Krezman ECO/365 October 21, 2013 Ramaling Iyer Supply and Demand Atlantis a small city with a distinguished atmosphere that has paternal for grow. A company Goodlife is looking at the effects of supply and demand on two- bedroom apartment rental. Goodlife is a property management company that manages seven apartment complexes with two-bedroom unit for rent in Atlantis. Currently, Goodlife who has monopolized the

Demand And Supply Questions

550 words - 3 pages Chapter 4 1. Suppose we have the following market supply and demand schedules for bicycles: a. Plot the supply curve and the demand curve for bicycles in Exhibit 1. Exhibit 1 Answer: See Exhibit 3. Exhibit 3 Practice Questions to accompany Mankiw & Taylor: Economics 1 b. What is the equilibrium price of bicycles? Answer: €300 c. What is the equilibrium quantity of bicycles? Answer: 50 bicycles d. If the price of bicycles were

Supply and Demand - 1013 words

1013 words - 5 pages "Microeconomics Law of Supply and Demand" ECO 365 July 6, 2015 Michael Blakley "Microeconomics Law of Supply and Demand" The simulation of “The Laws of Supply and Demand” provided a wealth of information about how crucial micro and macroeconomic is to the economy. Green Life Apartments in Atlantis city depicted the impact of various economic factors; in which it was apparent that micro and macroeconomic played a role in this scenario. In

Supply And Demand - 916 words

916 words - 4 pages CAR Explain factors that could cause possible changes in supply and demand. 1. Time of year - at end of year people want to wait for next model year. At beginning of year the current model in more demand than last year’s model. 2. Price of gas - SUV (gas guzzlers) become less desirable when gas is high. 3.Fad - going green is chic so hybrids and flex fuel and smaller cars are desirable. 4. Taxes - governments can given lower taxes or

Related Essays

Supply And Demand Essay 1563 Words

1563 words - 7 pages raised rents on tropical cane lands. 7. The income of a consumer decreases and his/her demand for a particular good increases. What can be concluded? 8. Explain the law of supply. Why does the supply curve slope upward? What are the determinants of supply? Distinguish between a change in supply and a change in the quantity supplied, noting the cause of each. 9. In each case below, identify the effect on the market for coal. (a) The development

Supply And Demand Essay 308 Words

308 words - 2 pages The GoodLife Management supply and demand simulation is based on the management of 2500 two-bedroom condominium apartments in a fictitious town named Atlantis. According to the simulation they are the only management firm in Atlantis and have a monopoly in the market. The simulation shows the issues the management deals with and gives the opportunity to see how the right or wrong decisions can affect the outcome of those decisions. What causes

Supply And Demand Essay 925 Words

925 words - 4 pages Running head: SUPPLY AND DEMAND SIMULATION Supply and Demand Simulation University of Phoenix ECO 365 Introduction A number of factors, including price increases or decreases, cause changes in supply and demand. An incremental decrease in the rental price led to a huge increase in the demand for houses. Similarly, an increase in the rental price of two roomed apartments caused a decrease in the demand of houses by a significant margin

Supply And Demand Simulation Essay

923 words - 4 pages Supply and Demand Simulation ECO/365 November 11, 2013 Supply and Demand Simulation Microeconomic and Macro Principles As per the simulation, the two major principles of microeconomics are demand and supply. The simulation focused majorly on the demand and supply of rental properties. The simulation clearly states that the macroeconomic factors are changes in the population trend. One of the factors that would directly influence these