Coffee

COFFEE
















can affect the economy world 
and had already caused economic problem 
to both the buyers and suppliers. 
These economic problems come from 
the concept of the demand and supply
that are related to the coffee. 
The demand side that is law of demand,
when the price is high,
quantity of the product is low or when the price is low,
the quantity of the product is high. 



The diagram below show the suppliers had forced to increase the pricing of the coffee up to 21% from the august 2007 to august 2008 so that to prevent any shortages of supplies.

• The graph shows how the law of demand works when the coffee price is affected and shows that when the price is decrease, the quantity of the coffee will increase.

The supply side that is the law of supply 
show if the price of the coffee is higher,
the quantity of the coffee will higher or the price of the coffee is lower, 
the quantity of the coffee will lower. 

• The graph shows how the law of supply works and suppliers need to limit their resource which is the coffee in order to produce more for the customers.

For example, Arabica and Robusta country coffee sold at 70% of the price of the Arabian to four coffee roasting companies like Nestle, Kraft, Procter & Gamble and Sara Lee also show that the quantity of their coffee is high.

Coffee Arabica made from
 coffee flowers from Arabica !

Robusta Coffee

[ sources : http://www.wikinvest.com/commodity/Coffee ]

Written by : Teh Li Wei