Microeconomics Current events Assignment Example | Topics and Well Written Essays - 500 words

Microeconomics Current events - Assignment ExampleThe crash in Colombian coffee ware can be well grasped from the statistics that in the year 2006 the surface area produced more than 12 million pound bags of coffee and was optimistic to take this number to more than 17 million by 2014. However the catastrophe that has been illustrated so far has restricted the Colombian coffee production at nine million pounds bags in the year 2010. This displays a decline instead of much expect raising. Research has been going on to form a suitable Arabic coffee variant with endemical qualities of Colombia that would be more resistant to pests and would be able to flourish even amidst heavy rain, however the nett outcome is yet to be found. Courting this deadline in supply on one hand and hold up in global demand for coffee on the other price of the same is on a rise. The retail price of coffee coming from famous brands has risen by 25% and the figure in futures market is even higher at 85%.Th e consequences for the Colombian coffee and the eventual impact on global coffee market from the same are following a simple logic. First of all told global warming and erratic climatic condition are mostly due to anthropocentric activities everywhere hundred of years especially after the industrial revolution. Secondly the decline in supply and rise in demand for the coffee (following an improvement of economic status of the population of the countries like India and China) has quite ostensibly resulted in a price rise in short run (excess demand). Again the scenario hovering global warming and the global climatic condition does not seem too bright in future therefore little hope is there that the production of coffee will be blessed with environmental favour once again in near future resulting in higher supply for the same.