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Thirst for Coffee Brews Chronic Supply Shortage

Graham Watson

9th February 2016

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Elementary demand and supply factors at play here: there's the prospect of higher coffee prices. Changing consumer tastes, as artisan coffee houses become the norm in cities such as London, mean that demand is increasing at the same time that supply is falling as a result of a drought in Brazil and farmers leaving the industry to work in urban areas. And rising market demand and falling supply have fairly straightforward implications for price. Will drinking flat white soon become as expensive as ordering a glass of house white?

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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