4min chapter

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Why the Price of Coffee Beans Soared in the Last Year

Odd Lots

CHAPTER

Do You Think There's a Demand Element in Coffee?

In general, coffee has a very inelastic demand. There's not a lot of substitutions for it. When we had a covert in the lockdowns, that created an intense shift from out of home consumption to grocery store. The initial reaction was, this is going to destroy demand. But more than that, the other sort of hidden demand that was destroyed was the sort of social demand for coffee.

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