Final answer:
The coffee bean has seen a significant reduction in turnover due to a combination of inelastic demand and shifts in supply. When there is a decrease in coffee production, prices increase. Conversely, when there is an increase in coffee production, prices decrease.
Step-by-step explanation:
The significant reduction in turnover of the coffee bean can be attributed to a combination of inelastic demand and shifts in supply.
The elasticity of coffee demand is low, meaning that a small change in price leads to a proportionally larger change in quantity consumed. For example, a 10% increase in coffee prices can result in a 30% decrease in coffee consumption.
When there is a decrease in coffee production, such as due to poor weather conditions or other factors, the supply curve shifts to the left, leading to higher prices. On the other hand, when there is an increase in coffee production, such as when new producers enter the market, the supply curve shifts to the right, resulting in lower prices.