Unit 4 Business Environment - Investigate the behaviour of organisations and the market environment
Supply and Demand Activity
For this activity you will be looking at the market for cups of coffee in say the Bristol Harbourside.
Do not confuse the market for coffee beans (a world market) and the market for cups of coffee.
Suppose that a bad weather and a poor harvest causes a shortage in coffee beans. What happens to the supply curve for coffee? If we assume demand remains constant what happens to equilibrium price and quantity?
Suppose that warm weather also reduced the demand for cups of coffee because people are drinking cold drinks.
Show what happens to the demand curve for cups of coffee.
