Microeconomics

Table of Contents

1. Topic pack - Microeconomics - introduction
2. 1.1 Competitive Markets: Demand and Supply
3. 1.1 Competitive Markets: Demand and Supply - notes
4. 1.1 Competitive markets - questions
5. 1.1 Competitive markets - simulations and activities
6. 1.2 Elasticities
7. 1.2 Elasticities - notes
8. Section 1.2 Elasticities - questions
   1. PED - short-answer
   2. Price, income and cross elasticity - self-test questions
   3. PES - short answer
   4. Inflation soars for staple foods
   5. Elastic iPods
   6. DaVinci scandal exposes tacky Chinese nouveau tastes
   7. Keep on boating
   8. Coffee prices remain high
   9. SUV's - cross elastic?
   10. Oil Prices
   11. Scare tactics lift prices for smokers
9. Section 1.2 Elasticities - simulations and activities
10. 1.3 Government intervention
11. 1.3 Government Intervention - notes
12. 1.3 Government intervention - questions
13. 1.3 Government intervention - simulations and activities
14. 1.4 Market failure
15. 1.4 Market failure - notes
16. Section 1.4 Market failure - questions
17. Section 1.4 Market failure - simulations and activities
18. 1.5 Theory of the firm
19. 1.5 Theory of the firm - notes (HL only)
20. Section 1.5 Theory of the firm - questions
21. Section 1.5 Theory of the firm - simulations and activities
22. Print View

Coffee prices remain high

Read the article Coffee prices to remain high and then answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.

Question 1

(a) Identify the main factors that have led to the increase in coffee prices. [2 marks]

(b) Using diagrams, as appropriate, illustrate the likely impact of the rise in the price of coffee beans on the market for instant coffee. [4 Marks]

(c) Discuss the extent to which coffee producers will be able to pass on the increase in the price of coffee beans to consumers. [8 Marks]