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# Examine two factors that may cause significant changes in the international price of coffee beans
- URL: https://www.a-level-economics-tutor.com/examine-two-factors-that-may-cause-significant-changes-in-the-international-price-of-coffee-beans/
- Published: 2026-07-20T12:02:41.000Z
- Updated: 2026-07-20T12:02:40.000Z
- Author: Jaisul Naik
- Tags: Edexcel 8 mark question

### [Edexcel A-Level Economics Paper 1 June 2022 Extract](https://storage.ghost.io/c/ed/77/ed776ea5-c32f-46bf-aa49-8f19b6cd7ac4/content/files/2025/10/INSERT---June-2022-Paper-1.pdf?ref=tootingtutors.co.uk)

**With reference to Figure 2 and your understanding of price elasticity, examine two factors that may cause significant changes in the international price of coffee beans. (8 marks)**

One factor that might have caused an increase in the price of coffee beans might have been changes in the weather. Coffee prices rose the most in August 2020, by 11.11%, Poor weather could make it harder to harvest coffee beans, leading to a decrease in the supply of coffee beans. As supply shifts to the left, there is a contraction along the demand curve, leading to a fall in the equilibrium quantity and an increase in the price. If demand is price inelastic, this means that a given shift in the supply curve will lead to a larger change in price. 

Another factor that might have caused an increase in the price of coffee beans might have been a decrease in productivity. The price of coffee beans went up by the second largest amoumt, 9.36% in March 2020\. It is possible that the covid pandemic caused more sickness, meaning that workers took time off sick or couldn't work as fast. This would have also caused the supply curve to decrease and the price to increase. 

However, the extent of the price rise depends on price elasticity of demand and price elasticity of supply. For example, when the supply curve shifts to the left by a given amount, the price will increase even more if the demand curve is price inelastic. This might be the case as there are a lack of strong substitutes to coffee beans so coffee shops will still buy coffee beans despite a higher price.

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