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Topic: Business
Number of pages / Number of words: 4 / 1042
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Two of the determinants of supply are the prices of resources and changes in nature. For example, more coffee will be supplied if coffee cost less to produce. A shift in demand will cause the change in the quantity supplied (the amount of goods/services that producers are willing and able to produce at specific prices at specific time) and a shift in supply will cause a change in quantity demanded (the amount of goods/services that consumers are willing and able to produce at specific prices at specific time)...


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In a free market, equilibrium is where the two curves meet when quantity supplied equals quantity demanded.

According to the article, demand for premium coffee is growing and since the supply hasn't increased, Starbucks will not be able to meet the demand in the short run. According to Schultz, the farmers that provide the coffee beans to Starbucks are increasing the quality of the coffee beans before selling it to them...


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