1.

Changes in demand affect price Robusta bean: Rising global demand prices up 13% (price-conscious market: Russia + Brazil) Arabica bean: No rise in demand prices down 37% (due to tepid economic growth, strongholds: US + Europe) Narrow the price gap between Robusta and Arabica. 2. Result of changes in prices Arabica: decreasing price more interest for Arabica beans.

Law of supply Robusta: Cheaper prices food companies sticks with Robusta beans.

Signals to buyers 3. Demand and supply forecast Seeing the increasing demand for robusta beans money managers are piling into robusta. Decreased arabica output in Latin America erode supplies and lift arabica prices Demand and supply forecasts estimate the trends in the future. These trends affect buyers and sellers decision in buying/selling products. Therefore, demand and supply forecasts can affect product prices. The theories used to analyse the article: 1. How changes in demand for a product affect its price? 2. Law of supply 3. Function of price in a market economy: signal to buyers and sellers. Note: c li bi v l thuyt xem tao tm tt v i chiu theory c g sai khng nh. Phn 3 l phn m rng c cn ni khng? Ai mun b sung thm g na khng?