In “American’s Coffee Guzzling Is Pushing Bean Prices Higher” by Laura Lorenzetti, she discusses the reasons behind the prices of coffee beans increasing throughout the world. This directly correlates to Economics 101 because she explains how the prices is related to both the supply of the beans from the producer and the demand that comes from the consumers. The demand for coffee beans is expected to reach an all-time high, with Americans leading the way in the consumption of this special brew.
The first reason that Lorenzetti gives for the increase in price is the fact that the demand for the coffee beans has increased vastly. This relates directly to the lessons in Economics 101 because as the demand increases, the price also rises due to the number of people wanting the coffee. For example, the demand for coffee beans has been greatly increased because countries such as the United States, China, Japan, and India are all wanting more coffee than ever before. Because of this 1.2% growth, which is more than ever before,
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Due to this, there has been a shortage of the amount of beans that are currently being demanded by all the countries of the world. For example, let’s say that the plantations were not able to grow the amount of coffee beans they normally would because of a drought. Due to this decrease in supply, the supply curve would shift to the left because the suppliers are no longer able to supply the amount they did before. Due to both the supply deceasing and the price increasing, Lorenzetti could conclude that the price will definitely increase for the consumers because there is a change in the equilibrium price. One aspect that is ambiguous is the quantity demanded because Lorenzetti does not know exactly how much the supply and demand curves have shifted, only their general