May 15, 2013
Article Analysis: The Economics of Coffee
People around the world consume numerous goods every day. There are several things that determine what quantities and how frequently they are consumed and those influences can either work in tandem or act individually to influence a person. It is these foundations that set an average for what consumers will purchase and the volume of goods to be created by agriculturalists and industrialists. This is known as economic consumption patterns, and these patterns are carefully studied by economists. With the data that they glean from this assessment economists can then use that information to provide the economy with data about the supply and demand of those goods and services. In an article by Dan Harrington titled “Coffee Price Increase 2011-2012 – Coffee Prices – Coffee Shortage Due to Emerging Markets” he posits that even though the United States is in the midst of an economic crisis, there has been no downswing on coffee consumption. Just the opposite, Americans are buying more coffee and the demand is rising every year. Coffee has an unfailing and growing economic utility. In other words, the level of pleasure received when people drink coffee has remained high over the years. Additionally, there are more buyers in our economy that are extending the types of beverages they drink with coffee, and the extensive assortment of coffee drinks that are offered. This has supported the increase of coffee’s utility in the marketplace. In the past several years the demand, or desire, for coffee has increased in countries more widely known for their consumption of other beverages. For instance, the people in China are traditionally considered consumers of tea, but in recent years this has changed. “The demand for coffee in China has been growing so rapidly analysts have a hard time gauging it though estimates have been a growth of about twenty...