Second question b 11:16(suo, aiyle httpsapi.schoology.co...Rude awakening as price of coffee and orange juice shoots up 20%Drought in main growing areas in Braziland a tree-killing bug have caused aspike in the price of breakfast favouritesSavour your morning juice and coffeethis weekend, because the price of yourfavourite breakfast drinks may be on the way up.Unfavourable weather in Brazil – varying from droughts toheavy rainfall and frosts – has driven up the price of coffee,sugar and orange juice around the world by more than 20% inthe past few months.The London traded November futures contract on robusta beans,the type mostly used to make instant coffee, has risen by a thirdsince June to $2,027 (£1,561) a tonne on the ICE exchange afterthe main growing areas of Espirito Santo and Bahia were hit bydrought, leaving farmers with only half their potential crop.The recent rise in price was also driven by concerns about nextyear's crop. With reservoirs dry or nearly empty in the regions,farmers have been reliant on annual rains to provide the moistureneeded to kickstart coffee plants' flowering season, and there hasbeen precious little precipitation."There has been rain but it's not enough to repair the damage,"said Carlos Mera, a commodities analyst at Rabobank.Brazil is the world's biggest producer of high quality arabicacoffee and the second largest grower of robusta beans. More thana quarter of coffee imported to the UK comes from Brazil,The country also produces 80% of the oranges traded onworldwide markets, more than half of which head to Europe, andexports nearly three times more sugar than any other country.The price of orange juice concentrate has risen 21% since Juneto more than $2 a lb on the New York futures market, a leveldescribed as "astronomically high" by Andres Padilla, a seniorcommodities analyst at Rabobank based in Brazil. Padilla saysprices have not been close to this level since 2006.Although globally we are drinking4% to 5% less orange juice everyyear, production fell by a fifth inBrazil in the latest harvest yearwhich finished in June, and bynearly a quarter in the world'ssecond biggest producing region – Florida.Both areas were affected by the tree-killing Huanglongbing bug,better known as citrus greening. Brazil's harvest was alreadyexpected to be down year-on-year because of the bug, but as thecrop was processed it emerged that heavy rains had left orangeswith lower sugar content so that it takes more fruit to make eachtonne of concentrate, the commodity exported around the world.Summary Questions:1) Explain why the price of coffee and orange Juice hasincreased by 20%2) We learnt last week that the Demand Curve slopesdownwards, draw a graph showing the Supply Curve,think about what way you expect it to slope, why this is thecase?

Question

Second question b 11:16(suo, aiyle httpsapi.schoology.co...Rude awakening as price of coffee and orange juice shoots up 20%Drought in main growing areas in Braziland a tree-killing bug have caused aspike in the price of breakfast favouritesSavour your morning juice and coffeethis weekend, because the price of yourfavourite breakfast drinks may be on the way up.Unfavourable weather in Brazil – varying from droughts toheavy rainfall and frosts – has driven up the price of coffee,sugar and orange juice around the world by more than 20% inthe past few months.The London traded November futures contract on robusta beans,the type mostly used to make instant coffee, has risen by a thirdsince June to $2,027 (£1,561) a tonne on the ICE exchange afterthe main growing areas of Espirito Santo and Bahia were hit bydrought, leaving farmers with only half their potential crop.The recent rise in price was also driven by concerns about nextyear's crop. With reservoirs dry or nearly empty in the regions,farmers have been reliant on annual rains to provide the moistureneeded to kickstart coffee plants' flowering season, and there hasbeen precious little precipitation.&#34;There has been rain but it's not enough to repair the damage,&#34;said Carlos Mera, a commodities analyst at Rabobank.Brazil is the world's biggest producer of high quality arabicacoffee and the second largest grower of robusta beans. More thana quarter of coffee imported to the UK comes from Brazil,The country also produces 80% of the oranges traded onworldwide markets, more than half of which head to Europe, andexports nearly three times more sugar than any other country.The price of orange juice concentrate has risen 21% since Juneto more than $2 a lb on the New York futures market, a leveldescribed as &#34;astronomically high&#34; by Andres Padilla, a seniorcommodities analyst at Rabobank based in Brazil. Padilla saysprices have not been close to this level since 2006.Although globally we are drinking4% to 5% less orange juice everyyear, production fell by a fifth inBrazil in the latest harvest yearwhich finished in June, and bynearly a quarter in the world'ssecond biggest producing region – Florida.Both areas were affected by the tree-killing Huanglongbing bug,better known as citrus greening. Brazil's harvest was alreadyexpected to be down year-on-year because of the bug, but as thecrop was processed it emerged that heavy rains had left orangeswith lower sugar content so that it takes more fruit to make eachtonne of concentrate, the commodity exported around the world.Summary Questions:1) Explain why the price of coffee and orange Juice hasincreased by 20%2) We learnt last week that the Demand Curve slopesdownwards, draw a graph showing the Supply Curve,think about what way you expect it to slope, why this is thecase?

Accepted Answer

A market is a place where the buyers and sellers interact with each other and the exchange of goods…

2) We learnt last week that the Demand Curve slopes downwards, draw a graph showing the Supply Curve, think about what way you expect it to slope, why this is the case?