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Cost of Production
Cost of Production
Cost of Production: An increase in the cost of production factors such as labor, raw
materials, and energy can lead to a decrease in the supply of coffee beans. If it becomes
more expensive to grow and process coffee beans, producers may decide to grow or sell
fewer of them, reducing the overall supply.
Climate Conditions: Adverse weather conditions such as drought, excessive rainfall, and
pests can also decrease the supply of coffee beans. These conditions can damage crops,
reducing the amount of coffee that can be harvested and sold, thus decreasing the overall
supply of coffee beans.