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Lesson 19 Whats the Big Deal About Spices?

• The starting point for European expansion had
  nothing to do with religion or capitalismbut it
  had quite a great deal to do with pepper.
• Henry Hobson, Seeds of Change Five Plants That
  Transformed Mankind

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Why were spices so important?
Lesson 19 Whats the Big Deal About Spices?

• What do you know about spices in history?
• Columbus was seeking the spice islands.
• Portugal, Spain, and Italy all wanted spices.
• They were used to flavor foods.

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Black Pepper
Lesson 19 Whats the Big Deal About Spices?

• Black pepper comes from the berry clusters called
  peppercorns that form on the pepper plant.
• Black pepper is one of the most popular spices in
  the world.
• Records show black pepper being traded from south
  Asia dating back to 4000 years.

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Cinnamon
Lesson 19 Whats the Big Deal About Spices?

• Cinnamon has a long history both as a spice and
  as a medicine. It is the brown bark of the
  cinnamon tree, which is available in its dried
  tubular form or as ground powder. Chinese and
  Ceylon cinnamon are the most common varieties.
• Cinnamon is a perfect spice to use during the
  winter months.

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Cloves
Lesson 19 Whats the Big Deal About Spices?

• Cloves are small nail-shaped flower buds that are
  dried.
• Sweet, somewhat penetrating flavor. Cloves can
  be bought whole or ground.
• Ground cloves are commonly used in baking.
  Cloves are native to Indonesia and are harvested
  mainly in Indonesia, Sri Lanka, and India.

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Market in Cinnamon
Lesson 19 Whats the Big Deal About Spices?

• Market Anytime buyers and sellers meet to
  exchange goods/services
• Market Demand Amount of a good consumers desire
  at different prices
• The higher the price of a good, the less of it
  consumers want.
• The lower the price of a good, the more of it
  consumers want.

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Changes in Demand
Lesson 19 Whats the Big Deal About Spices?

• A change in market demand for cinnamon occurs
  when consumers are willing to buy more (or less)
  cinnamon at all prices.
• Several factors can shift market demand
• Consumer tastes As we saw with the cinnamon
  market, if consumers desire for a product
  increases, so will demand. If desire decreases,
  so too does demand.
• Number of consumers The more buyers in a market,
  the higher the demand. If buyers leave a market,
  demand decreases.
• Consumer income As consumers earn more
  (overall), then they tend to spend more,
  increasing demand. If consumer income decreases,
  demand decreases as well.

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Market in Cinnamon
Lesson 19 Whats the Big Deal About Spices?

• Market Supply Amount of a good sellers want to
  provide at different prices
• The higher the price of a good, the more of it
  sellers want to provide.
• The lower the price of a good, the less of it
  sellers want to provide.

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Changes in Supply
Lesson 19 Whats the Big Deal About Spices?

• A change in market supply of cinnamon occurs when
  sellers are willing to sell more (or less)
  cinnamon at all prices.
• Several factors can shift market supply
• Number of producers The more cinnamon
  suppliers, the greater the market supply of
  cinnamon. Fewer suppliers means less market
  supply of cinnamon.
• Cost of resources If costs increase, less
  cinnamon can be supplied and market supply
  decreases. On the other hand, if these costs
  decrease, then market supply will increase.
• Changes in technology Improved technology (the
  tools, machines, etc. needed to produce cinnamon)
  can mean an increase in market supply of
  cinnamon.
• Natural events Events that occur in nature such
  as floods, freezing weather, or hurricanes can
  disrupt supply.

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Determining the Market Price
Lesson 19 Whats the Big Deal About Spices?
Scenario Affect Supply or Demand? Affect Price?
1. Splinters of Paradise Demand
2. Improvements in sailing technology Supply
3. Nutmeg and cloves were thought to cure disease Demand
4. Dutch East India Company took over the Spice Islands Supply
5. Spices were a luxury good Demand
6. Traders told outlandish stories Supply
7. Tobacco, coffee, sugar, and tea became the new status symbols Demand
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Demand Schedule for Cinnamon (1439)
Lesson 19 Whats the Big Deal About Spices?
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Demand for Cinnamon (1439)
Lesson 19 Whats the Big Deal About Spices?
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Supply Schedule for Cinnamon (1439)
Lesson 19 Whats the Big Deal About Spices?
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Supply of Cinnamon (1439)
Lesson 19 Whats the Big Deal About Spices?
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Demand Schedule for Cinnamon (1440)
Lesson 19 Whats the Big Deal About Spices?
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Demand for Cinnamon (1440)
Lesson 19 Whats the Big Deal About Spices?