ECON ASSIGNMENT
I need at least 3 online sources with in-text citations and a referene list.
No Book sources please.
APA Format
Must be plagarism free
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In economics, they say a picture is worth a thousand words.
The assignment is to discuss the situation by writing the solution, and then show the solution and how you got it in one or more graphs or flowcharts.
Assignment:
Supply and demand are foundational concepts in understanding economic theory. Whether you are a coffee drinker or not, you have been tasked to examine the impact of supply and demand when dealing with the coffee retail industry.
Research the Foldgers Coffee Company, and then analyze what has been happening the past 5 years to both the supply and demand for their coffee.
Next, analyze the following scenario which deals with what happened in the coffee industry starting at the beginning of last decade:
Scenario:
In the early part of the last decade, there was an overproduction of coffee. The price dropped so low that producers’ costs were higher than the market price. The reason this happened was that market prices became high before this, and the supply of coffee increased substantially. In the meantime, demand for coffee and everything else remained the same.
Coffee prices, as a supply input, went down. In the meantime, gourmet coffee houses began appearing, which began charging a premium for coffee in the period of decreasing prices.
Gourmet coffee houses tend to open in high-rent areas and cater to higher income consumers. Because of the change they created for taste and preferences and the higher income market, the gourmet coffee houses had a win-win in a period of falling wholesale prices and increasing retail prices.
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Based on the given scenario above, explain the changes in the supply and demand by creating a supply and demand curve . In this graph, be sure to demonstrate how these changes affected the price and quantity levels of supply and demand.
Based on this analysis, how were coffee retailers faring in the marketplace?
