plz solve these questions
Coffee Break scent research has shown London and New York. At any one such as Nestle, is for coffee to be time, the amount to be sold and the bought direct from local farmers. have bought instant coffee quantity shit manufacturers and This happens only in countries in the last year. Moreover, coffee processors wish to purchase are where Nestle manufactures locally as a drink continues to increase in key factors determining its price. and also for export. In such popularity. as consumers try Like any product, therefore, the Circumstances, Nestle offers a 'fair variations such as cappuccino. price of raw coffee is determined price to farmers to ensure a regular espresso, mocha and latte. This where market supply and demand supply of green coffee. This price expansion in demand has also led are equated. is widely advertised as the to an increase in the types of The final price of raw coffee is minimum price that will be paid for manufactured coffee available, very important for the economic supplies. It also follows that the although instant coffee remains the well-being of millions of people higher the quality, the higher the Largest sellet living in countries such as Costa price. This arrangement ensures Raw coffee, when it leaves the Rica, Kenya and Colombia which that farmers continue to grow plantation, is pale green, hence the are heavily dependent on this crop. coffee, whilst providing Nestle name 'green coffee' when it is Typically, farmers in such countries with regular supplies outside the traded It is bought and sold on practise small-scale production - uncertainties of the occasionally world commodity markets in their plots of land might be no volatile world commodity market. more than I or 2 hectares. It is therefore unrealistic for them to sell their product direct to the world market. So what usually happens is that they sell their crop to a government-controlled agency which in turn releases stocks onto the world market, depending on market conditions. An alternative approach, practised by major manufacturers Coffee bean Coffee beans on bush 1 (a) How is the market price of raw coffee determined on the world commodity markets? (b) Excluding price, state and explain two other determinants of the demand for raw coffee in world markets. () Suppose a major coffee producing country decides to reduce supplies to the world market. Assuming no change in demand, use a diagram to explain how this action would affect the world raw coffee price, 2 (0) Define elasticity of supply. (b) Would you expect the price elasticity of supply for taw coffee to be relatively elastic or inelastic? Justify your answer, (
