What to speak-

Price Elasticity Of Supply-

Price elasticity of supply measures the degrees of responsiveness of the quantity

supplied of a commodity to a change in its price.

The harvest of coffee is seasonal and relatively stable in long term. and also because it
takes months to grow coffee bean and after harvesting it is difficult to change the
quantity, so in very short run PES may be perfectly inelastic

supply, in the long run would be elastic, as coffee crops will have time to mature, hence
bringing price to normal level. In numeric terms, value of price elasticity of supply will be
greater than 1.

Determinants-

1. Time element- Time period is a main factor influencing PES so in the short run
the supply of coffee cannot be changed rightly after the prices starts increasing.
Then the supply of coffee is inelastic.
2. Nature of commodity- Coffee is a perishable good. Why- because coffee beans
begin to lose their freshness soon after they are roasted. As perishable goods
cannot be stored, supply is less elastic. [here if coffee is properly stored it will
stay good for about a month or so]
3. Nature of techniques- We all know that production of a coffee is complex, then
the supply of the coffee will be inelastic as supply cannot be increased easily.

Reason for disturbance in the coffee markets-

The main reason in the disturbance of coffee market is the largest producer of coffee,
Brazil. Due to bad weather conditions and covid-19 the supply went down and affected
the global market.