Laws of Demand and Supply The purpose of this assessment is to review a recent n
ID: 1210876 • Letter: L
Question
Laws of Demand and Supply
The purpose of this assessment is to review a recent news article based on demand and supply issues. Then summarize the article and demonstrate your understanding of laws of demand and supply.
Assessment Description:
Find a credible news article based on laws of demand and supply. Summarize the article by identifying the application of laws of demand and supply. In addition, explain laws of demand and supply and answer the following questions:
How has your knowledge of laws of demand and supply helped you understand the article better?
Explain any exception(s) to the laws of demand and supply present in the article. In case you do not find any exception, assume the laws of demand and supply are not present in the article and explain how the situation in the article would change.
What other elements of macroeconomics related to demand and supply, such as price, inflation, and so on are present in the article? Explain their role and impact on the events of situation explained in the article.
Explanation / Answer
The lowly robusta bean, a variety that winds up in Nestle's Nescafé and other instant coffees, is moving up across the globe
Prices of robusta coffee beans are up 13% in the last year due to rising global demand, more so among price-conscious consumers in emerging markets.
On the other hand, consumption of the costlier arabica bean in its strongholds of the U.S. and Europe is barely rising due to tepid economic growth. This has helped push arabica prices down 37%.
Many investors are paying attention to the reducing price gap between robusta and arabica
As robusta beans still are cheaper, many food companies are sticking with them, at least for now.
The world is using more, cheaper [coffee] blend .It is related to the world economy that requires cheaper coffee on market shelves.
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