Transcript LESSON 19 – WHAT`S THE BIG DEAL ABOUT SPICES?

LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
“The starting point for European expansion
had nothing to do with religion or
capitalism—but it had quite a great deal to
do with pepper.”
—Henry Hobson, Seeds of Change: Five Plants
That Transformed Mankind
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Why were spices so important?
• 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.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Black Pepper
• 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.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Cinnamon
• 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.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Cloves
• 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.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Market in Cinnamon
• 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.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Changes in Demand
• 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.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Market in Cinnamon
• 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.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Changes in Supply
• 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.
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Determining the Market Price
Scenario
1. “Splinters of Paradise”
Affect Supply
or Demand?
Demand
2. Improvements in sailing technology
Supply
3. Nutmeg and cloves were thought to
cure disease
4. Dutch East India Company took over
the Spice Islands
5. Spices were a luxury good
Demand
6. Traders told outlandish stories
7. Tobacco, coffee, sugar, and tea
became the new status symbols
Affect
Price?
Supply
Demand
Supply
Demand
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Demand Schedule for Cinnamon
(1439)
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Demand for Cinnamon (1439)
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Supply Schedule for Cinnamon
(1439)
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Supply of Cinnamon (1439)
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Demand Schedule for Cinnamon
(1440)
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 19 – WHAT’S THE BIG DEAL ABOUT SPICES?
Demand for Cinnamon (1440)
FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY