(a)[2]
Use a demand and supply diagram to show why there was a ‘huge’ increase in the price of Arabica coffee beans in 2021.
(b)[2]
Is the price elasticity of supply of coffee beans likely to be elastic or inelastic in any one year? Justify your answer using the information provided.
(c)[4]
Consider whether a buffer stock scheme is likely to be effective in reducing the price fluctuations shown in Fig. 1.1.
(d)[6]
Assess the extent to which coffee bean producers will gain from the huge increase in coffee bean prices in 2021.
(e)[6]
Assess the likely impact of the fluctuations in coffee bean prices on the economies of major producers such as Brazil and Vietnam.