Introduction to Microeconomics Essay Example | Topics and Well Written Essays - 500 words

Introduction to Microeconomics - Essay ExampleOne of the vital factors that have caused such a situation to happen is the lower train of harvest in Mexico. Mexico has been one of the major exporters of umber beans to Brazil. Thus, fall in the center of harvest of cocoa in Mexico resulted in a shortage of add together of cocoa for the domestic consumption in Brazil. Another important factor behind the shortage of coffee supply was the sudden call out for a strike by the truck drivers of Columbia. This strike lasted for roughly two weeks thus affecting the supply, in consequence, the export of coffee to a large extent. Increased amount of exports of coffee beans abroad is another factor behind the shortage of domestic supply. There have been grand sales of coffee at abroad in this month of February while on the other hand, the level of demand of coffee domestically is expected to increase further, and thus, will aggravate the problem of rising prices further. As the economy exp eriences a boom in the market, Brazil has toped to break all records as the export of coffee amounts to 2.7 millions of bags, equivalent to which, the consumption level of coffee rates to more than one millions of bags. The consumption of green and alcohol-soluble coffee in Brazil is set to reach a limit of 6% in proportion to a record of 20.27 millions bags weighing sixty kilograms each.