A change in technological improvements in growing coffee can make changes to the blending of the inputs or the other types of inputs that is needed in the production process.The example of inputs are labour,materials,machinery and many more.The workers can produce more coffee with the help of advance technology.When there is an improvement in growing coffee,it means that less costly inputs are required.
Assume that if the cost of production is low,then the profits is applicable at a price which will boost up,and the producers of coffee will eventually produce more coffee.If there are more coffee that is produced at every price,then it will occur shifts in supply. The definition of shifts in supply is an adjustment in the amount supplied at each given cost .Therefore, the supply curve will eventually shift to the right side from S0 to S1,because the production of coffee has increases that lead to the increases of supply and the coffee will be supplied at a higher prices which is according to the law of supply.The definition of supply curve is the quantity of goods that makers are able to supply the products at every single cost.However,the supply curve is collected from the extra cost curve which means it is the added cost of producing a goods would increase and producers need high prices to produce the goods.There are factors that the producers need to considered when supplying coffee.The producer need to considered the number of producers,the technology,the prices of factors of production and many more.Nowadays,many industry is aware of the impact of climate changes on the coffee production.According to (Govender,K.,2015)roughly a 35% dropping in yield for farmers when there are decreases of up to 28 million US dollars in the export earnings for other country,because of climate changes.We usually think that technology always enhancing the production of coffee,but sometimes technology have technical problems which greatly declines the production of coffee.It will reduce the profits that is available at any prices.When these two problems occurred,the supply curve will shift to the left from S0 to S2 that is shown in the graph,because the production of coffee has decreases that lead to the decreases of supply and the coffee will be supplied at a lower prices.
We Will Write a Custom Essay Specifically
For You For Only $13.90/page!