quora
Nobody downloaded yet

Economic100 Analysis - Article Example

Comments (0) Cite this document
Summary
Coffee price hike sours brew Introduction Coffee has nowadays become one of the essential consumer good items. It is used by people around the world. However, it’s alarmingly distressing that the prices of a brew are now going up. The article under consideration implies that the average price of a cup of coffee has steadily been increasing, given the hike in its raw material, coffee beans…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
Economic100 Article Analysis
Read TextPreview

Extract of sample
"Economic100 Analysis"

Download file to see previous pages The article sheds light on the increasing costs of business, implying that not only the apparent rise in coffee beans but also utilities, rent etc attribute to the hike in the prices. Keeping this in mind, the climate of business is not a favorable one, and this may have short term to middle term implications for other segments in the market as well. The objective of this analysis is to apply relevant economic concepts to this article and understand the fundamentals at work here. Economic Concepts There are a few key economic concepts which can be applied to explain the whole of things. Some of them include demand pull inflation, increase in aggregate demand, porter’s five forces etc. Particular focus will be laid on the implications of the existing context, given it persists and how it will hamper longer terms sales etc. Analysis The first economic concept which the article lays emphasis on is the fact that there has been an overall increase in the demand for coffee around the world. We’ve seen that over the course of the last 3 decades, a lot of globalization has taken place, and in the process, there has been a lot of transference of good and services across borders. Coffee is one of those items which has found a market for itself wherever it has gone. Growing economies such as China and India have shown great promise in terms of demand for the products and this has only fueled the prices in an upward direction. When aggregate demand increases, it has to be followed by an increase in the aggregate supply in an equal magnitude otherwise the result is inflationary pressures in the economy. In the case of coffee, the demand has increased, but the supply has not been able to cope with the demand. Hence the result is demand pull inflation. As is seen in the diagram, increases in the aggregate demand will cause a movement along the curve, but if there are other variables altering, then this can trigger a shift of the curve all together. The inflation we refer to over here doesn’t imply that the whole economy is heating up, but rather just the coffee segment. However, inflation is something that cannot be sustained in this segment. The reason can be explained by Porter’s Five Force model. One of the key pillars of that model is the threat of a substitute. In the case of coffee, there are many substitutes readily available in the market. They can include tea, lattes, cappuccinos etc. The point is that price fluctuations are not sustainable in an industry such as this one. Moreover, the price sensitivity of this product is extremely high. Therefore, even the slightest fluctuations in price could trigger a decrease in supply for this product. Now the real debate starts here. The problem in prices arose due to an uncoordinated demand. However, what’s the trade-off between increasing prices and increasing consumer base? The answer to this question lies in the fact that no production line would like to see a decline in the demand for that particular good, however, it must be able to sustain the demand without increasing prices. If prices are pulled up due to these pressures, it implies that the demand cannot be sustained and eventually, the higher prices will lead to a decline in the demand and equilibrium will once again be attained on the previous level. When that happens, this cycle will repeat ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economic100 Article Analysis Example | Topics and Well Written Essays - 1250 words - 1”, n.d.)
Retrieved from https://studentshare.org/gender-sexual-studies/1415591-economic100-article-analysis
(Economic100 Article Analysis Example | Topics and Well Written Essays - 1250 Words - 1)
https://studentshare.org/gender-sexual-studies/1415591-economic100-article-analysis.
“Economic100 Article Analysis Example | Topics and Well Written Essays - 1250 Words - 1”, n.d. https://studentshare.org/gender-sexual-studies/1415591-economic100-article-analysis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Article analysis
Both qualitative and participatory approaches have been made. The researcher has conducted this research to bring out to what level a child is affected when they are in a stage of mobility. The main focus has been stressed upon participatory method of research.
6 Pages(1500 words)Article
Economic100 Article Analysis
Warana Fruit Shed fruit and vegetable manager Jon Clinch expects vegetable prices to go down by almost 50% in the next two to three months as winter settles in. “A lot of farmers replanted not too long ago. We will be seeing everything coming back to normal price range in the coming months but vegetables will be the quickest,” he said.
5 Pages(1250 words)Article
Economic100
From the workers’ perspective, this can be catastrophic for the producer of Tooheys, which controls about 50% of the market supply. Lion Nathan, the parent company which is facing this strike,
5 Pages(1250 words)Essay
Article Analysis
In terms of barrels, stocks piled up to 147.6 million, an increase of 3.99 million. The article further states that demand for heating oil and diesel went down by 3.28 million barrels a day and in percentage terms the demand went down by 2.2 percent when compared with the similar period a year before.
3 Pages(750 words)Research Paper
Article analysis
The first of the 4 P’s of marketing i.e. the product of the company I chose is Coca Cola which is one of the oldest and the most popular and widely consumed soft drinks all over the world. The formula of Coca Cola is the biggest secret of the company. Not many working within the Coca Cola Company have access to the formula used to make the drink.
3 Pages(750 words)Article
Article Analysis
The biggest fish suggests that the world is just because no other fish threatens its life. It seems like an opportunist, who does not care about other people’s rights and freedom. It kills and feeds on the other two fishes with impunity, and no justice is done.
3 Pages(750 words)Article
Article analysis
In this context, the interpretation of Roman Houses is considered to be – in accordance with Hadrill – a challenging task. In accordance with Hadrill, different phases
3 Pages(750 words)Article
Article Analysis
Consequently, putting pressure on employees to work under such circumstances merely leads to occupational stress. This may simply render one redundant since one rarely concentrates on their work
2 Pages(500 words)Article
Article Analysis
To this problem, for which the technical experts have tried to come up with technical solutions such as improving agricultural produce harvests and going to the sea to look
2 Pages(500 words)Article
Article Analysis
d output attributes the author to argue that, performance by male on a masculine task was more attributed to skill, whereas an equivalent performance by a female on the same task was seen to be more influenced by luck(Deaux & Emswiller, 1974) . The analysis will be aiming at
3 Pages(750 words)Article
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Article on topic Economic100 Article Analysis for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us