Effect of Demand on Supply on Coffee and Sugar Prices

Effect of Demand on Supply on Coffee and Sugar Prices Table of Contents (jump to) Introduction Economic Concepts Article Analysis Title: Coffee shortage may arise due to drought, climate change, rising demand, analysts say Conclusions Reference Introduction Microeconomics deals with economic decisions at micro level. It looks at the behaviour of the individual, people and companies within the economy. Being based on the idea of the market economy in which the consumer demand is the main driver for the prices and production levels of goods and services. It is basically inclined to explain how the interested parties choose in using limited resources being made available to them. It also focuses on the drivers of making decisions and the ways in which such decisions of them affect the demand and supply of specific goods and services. For the following article also I have choosen the effect of demand on supply on prices of two commodities as coffee and sugar. Economic Concepts The study of demand and supply on price due to the climate changes, where the prices increase due to the shortage of commodities or products and supply is short and where the demand is high is being discussed in the article. Article Analysis Title: Coffee shortage may arise due to drought, climate change, rising demand, analysts say Source: The Washington Post, February 21, 2014 When we discuss about the microeconomics we mean the study of economic behaviour of individual units of economy and not aggregate economy. It is basically concerned with the individual economic choices, the effect of changes in these factors on individual decision makers, how choices are coordinated of them and how demand and prices are determined. It so deals with the economic decisions made at low or micro level. The effect of demand and supply on a product of economy is updated while going through the article updated on February 21, 2014 which is explaining how Coffee shortage has arise and its impact on demand. The article thus explains that by the time of year in February, the delicate Arabica coffee plants which are in mountains of Brazil, where from most of the coffee comes, are about to mature by this time. The fragrant flowers appear followed by cherry like fruit, which each of them containing two seeds as Arabica Coffee beans, which are most popular in the world. But coffee shortage aroused due to the worst drought occurred last month in Brazil coffee belt region, thereby destroying the crop yields and causing the price of coffee to shoot up with a percentage of more than 50 this year. Drought being historic and more than 140 cities in Brazil was forced to ration water, whereby according to some newspapers drought was so devastating that some neighborhoods of Brazil were receiving water every three days only. But according to Jack Scoville (a future market analyst) now the retail price of coffee has been stable. But their could be chances for the rise in price of Arabica beans then this year consumers would notice an increase in the prices of their coffee. Therefore this is a case of demand increase and supply shortage whereby putting an impact on the prices by increasing them. The resultant of such a drought was the rise in price per pound of coffee which was meant for delivery due in March had reached the highest point around $1.72 in 14 months. There could be global coffee deficit were assumed before drought had to arise. Therefore for the first time in three years the global market of coffee would face shortage. So the predictions for the session 2014-15 were that the coffee supplies would be lowered by 5 million bags. But according to the last years data there was so much coffee that Arabica coffee futures has fell down by 25% and according to experts the price of coffee would rose for long time period just because of people in developing markets like Brazil, China and India are acquiring a taste for coffee. Higher prices and more competition will be seen due to high quality of coffee according to a coffee buyer and sustainability manger as Kim Elena Ionescu. The developing world made coffee and the developed world had drunk it. But now the scenario has changed and the developing countries are also consuming coffee alongwith making it. More people are involved in drinking better coffee according to what is mentioned in the article. Therefore demand will continue to make a shortage in supply. But there are considerable concerns that the climate change will also hamper the supply of coffee as it had happened in Brazil due to drought. This climate change in Brazil brought drastic changes in the price of coffee with the increase in its demand and shortage in supply as people preferred coffee over tea as many don’t like tea and prefer to have coffee in morning everyday. The taste of coffee has so long lasting effect that it makes the individual addicted to coffee have coffee even at high prices. To explain the above statement concerning the increase in price,the above graph mentions that with the increase in demand of coffee the demand curve shifted to the right and the quantity demanded increased from Q1 to Q2 and price increased from P1 to P2. The Brazilian company has various thoughts on such a situation when it happened to be the worst drought as it would put the company in risk for their supply chain of Arabica coffee bean as mentioned in the article by the head of sustainability, Starbucks in 2011. As this company is the worlds renowned Company for selling coffee with high quality and variety which attracts the customers to have coffee from Starbucks store only. To explain the above statement, the above graph thus shows how coffee prices are increasing from P1 to P2 and the demand curve is shifting to right due to increasing demand of coffee, but the supply curve shifts to left showing that there is shortage of coffee. According to the article it is mentioned correctly that many people like sugar in their coffee and for them as Brazil along with being the maker of coffee is the world’s largest producer of sugar, due to such conditions of drought is forced to take action as to disrupt plans for harvesting sugar cane. So the future prices of sugar tend to be at a rise and are at high level from the past two months due to the effect of climate change. Therefore the article has made it clear the after effects of climate change as drought on the production of coffee beans and as well on production of sugar cane. This had made the worse situation for the economy as supply chain has also being effected and due to the shortage in supply and increase in demand of coffee and sugar as well had made the prices of sugar and coffee to rise. This article thus made me to realize a situation where people would suffer due to the high costs and it may affect their purchasing power as well. As people would tend to earn in such a economy as they were earning earlier but in crises situation their income would also be affected as the company would not be able to pay much but in such a situation people who have to purchase emergency goods as coffee to satisfy their needs will purchase it at high cost no matter their income allows to purchase at high prices and sugar which is the more necessary commodity is also to be purchased by them at high cost. These sorts of purchases will affect their purchasing power to purchase other commodities which are less essential but yet in their need criteria to be left out as such. This decision is taken in a microeconomic environment. Therefore the country involved in producing the Arabica beans for the production of coffee is forced to think in future aspects of the increase in price of coffee to affect its supply chain as well, to come to a optimal solution to get rid of this problem in such a situation. As more and more people are inclined towards having coffee and one who is habitual to having coffee cannot be without it as coffee is also included in a drink which creates addiction for the individuals who are in regular use of coffee. Conclusions The article has a clear analysis of the increase in price of commodity due to the increase in demand but decrease in supply. As there is shortage of supplying the coffee due to the climatic changes so the prices of the coffee are at hike and the demand is also at hike accordingly. Therefore the article is showing a clear picture of the microeconomic situation and the study of economic theory as well. The economic theory so suggests the demand and supply are the main constraints for a product or commodity and are sometimes opposite in curve and sometimes run parallel by keeping any one constraint as demand or supply as constant with changes in price. Reference Yang, J., (2014), Coffee shortage may arise due to drought, climate change, rising demand, analysts say, [Article], Available: http://www.washingtonpost.com/business/economy/2014/02/21/0f16ed44-9b28-11e3-975d-107dfef7b668_story.html [Accessed 7 May 2014]

Indo-Anglican Novel: Meena Shirwadkar Essay examples -- indian women

With the advent of the 20th century, the change in the statue and spirit of women has been noted by sociologists. In post-independence India, when women’s education commenced, life had started changing. The spread of education inculcated a sense of individuality among women and aroused an interest in their rights. The early writers presented the traditional type (sita) but the writers tried to show the emerging new woman. The new woman does not want to lead a passive married life of a sacrificial and shadowy creature because the education has matured her sense of individuality. R.K.Narayanan portrays a wide range of feminine characters from conventional to rebellious. Mulk Raj Anand wrote for the emancipation of women. Moreover feminist trends appeared on the horizon and they came into conflict with the conventional moral code. The image of woman in literature in recent decades is different from that of the past. Indian English fiction writers during the last two decades of th e 20th century provide a glimpse into the female psyche and deal with a full range of feminine experience. A study of the recent Indian English fiction reveals that the female protagonists are quite conscious of their identity and are no longer meek and submissive. There is a marked difference in their attitude as compared to the portrayal of woman in early literature. In ‘Images of woman in Indo-Anglican Novel’, Meena Shirwadkar claims the changes in Indian society. Novels have started to progress from depicting women characters solely as epitomes of suffering and womanly virtue as portraying more complex as well as real characters. In the recent years, this was taken to understand that writing was the only preference made by women. Through this medium of ex... ...ndian women novelists advocates independence and assertiveness of women by depicting their characters as survivors who successfully bear torment both physical and emotional. They must raise their voice against the brutalities and violence which is caused by the society. They tend to rebuke the male dominating society which discourages self-reliance in women. Works Cited: Seshadri, Vijayalakshmi. The New women in India- English Women Writers Since the 1970. Delhi: B.R. Publishing Corporation. 1995. Lakshmi C.S. The Face behind the mask : Women in Tamil literature, Stosius Inc/Advent Books Division ,1984. Shirwadkar, Meena. ‘Image of Woman in Indo-Anglican Novel’, Sterling Publishers Pvt., Ltd., 1979. Dhawan, R.K. ed ‘Indian Literature Today’. New Delhi: Prestige Books, 1994. Iyengar, K. R. S. ‘Indian Writing in English’ , New Delhi : Sterling Publication, 1985.

Saving Private Ryan Historical Review Essay -- essays research papers

Saving Private Ryan   Ã‚  Ã‚  Ã‚  Ã‚  I chose Saving Private Ryan, the 1998 movie directed by Steven Spielberg about the invasion at Normandy and a special mission that follows, as the topic of my paper. The mission is for eight men to go behind enemy lines and rescue a soldier who’s brothers have died in battle and bring him back.   Ã‚  Ã‚  Ã‚  Ã‚  The movie starts with the D-Day invasion at Normandy Beach, a very tragic and great day at the same time. Allied troops were being shot the second the landing vehicles opened, mortars were dropping all over, there was no cover, and those who sought refuge in the water were drowned by the weight of their equipment. As all of this happens, we follow members of one unit as they struggle to make their way on shore. Bodies are dropping everywhere, the wounded are piling up, and things are looking down. After intense battle and effort, however, the Allied forces finally take the beach, but not without a high cost of life.   Ã‚  Ã‚  Ã‚  Ã‚  From what I know and have heard about the D-Day invasion, the movie was very accurate on it’s portrayal of the attack. The action was so intense at the movie theater I first saw it in that a veteran got up and left for a while because he was crying so bad. I later found out that he had actually been there and that seeing it so vividly on screen had brought back too many bad memories. If that doesn’t convey realism, I don’t know what does.   Ã‚  Ã‚  Ã‚  ...

The Hollow Men Analysis

â€Å"We are the Hollow Men, We are the stuffed men† In this poem by T. S. Elliot, he uses symbolism, mixed with a quick tempo at the beginning, moving to a slower one at the end to describe how a man’s life generally goes by. In the early stages of a man’s life, he is constantly being filled with information and qualities that society deems necessary and desirable. He will spend no time dwelling on the innermost insecurities that we, as humans, all have. He is a Hollow Man. As we go through the motions of life, we rarely spend time in our early years to contemplate and delve into the insecurities and emotions, the thoughts and feelings that make us who we are. We are content being ignorant to the deeper things; the things that make us think about the greater workings of the Universe, and the smaller workings of ourselves. We know those things exist; we simply don’t want to hear them, because, as we’ve all heard at one time or another, ignorance is bliss. â€Å"Eyes I dare not meet in dreams† As we move further into the journey of life, we begin to understand that something is missing. We begin to come to the realization that there are things about ourselves we don’t want to know. We are ashamed that we have gone this long, and have not sought out the greater meaning we inherently know is there. We know we’ve done wrong, but don’t want to face it. We fear what we will discover about ourselves. It is easier to look in a mirror and see your reflection just as being your reflection, and not contemplate the person you see. It is easy to say â€Å"This person has blonde hair, blue eyes, and pale skin. † It is difficult to say â€Å"This person has feelings, beliefs, insecurities, and a deeper meaning. â€Å"At the hour when we are Trembling with tenderness Lips that would kiss Form prayers to broken stone. † This stanza represents how at the end, we know that our lives of passion, where we have done nothing for a greater purpose than for our own personal comfort and entertainment, were insignificant. We know, maybe for the first time, that there was more to living than just existing. We know that we are nothing, and that we have nothing. We know that we are coming to the end, and we are willing to do anything to keep that end from coming. We pray, and beg, and plead, just wanting a chance to have done something truly worthwhile. â€Å"This is the way the world ends This is the way the world ends This is the way the world ends Not with a bang, but a whimper. † When that final end comes, it will not be in some grand event of chaos and hellfire, It will be much worse. It will be a personal revelation that what you have done did not matter. It will come as a quiet, internal battle, with nobody there to console you but yourself. You will have to face your life with a new sense of understanding that only comes with the end.