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Forecasting Demand for Coffee

Question

Discuss whether or not demand for coffee is likely to rise in the future.

Category:

Market Structures and Competition

Frequently asked question

Preview Answer

I. 🍃Introduction
- Explanation of the factors that may affect the demand for coffee

II. Factors that may increase the demand for coffee
- Rise in incomes
- Fall in price (due to subsidies)
- Improvement in quality
- Increase in population

III. Factors that may decrease the demand for coffee
- Fall in price of substitutes (e.g. tea, coffee produced by other countries)
- Health reports suggesting coffee is harmful
- Rise in price of complements (e.g. milk)
- Imposition of taxes/tariffs on coffee
- Reduction in marketing efforts

IV. Analysis of the demand for coffee
- Explanation of coffee's inelasticity
- Constant growth in demand due to population growth
- Possibility of demand not rising due to alternatives to coffee
- Education on harmful effects leading to reduced consumption

V. 👉Conclusion
- Summary of the factors affecting the demand for coffee
- Importance of considering these factors in the coffee industry.

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