Background

Welcome to Ten Forward, a quirky, Star Trek–themed coffee shop located in a busy city center. With decor inspired by starships, baristas dressed as Starfleet officers, and drinks like the “Captain’s Brew” and “Warp-Core-Breach Cold Brew,” the café quickly became a local favorite.

The owner, Guinan Quark, started the shop with a love for sci-fi and a passion for quality coffee. But as the real-world economy has shifted over the last few years, Guinan’s business has gone through some tough changes. Now, she needs your help to figure out how economic forces are affecting her shop—and what she can do about it.

Economic Concepts to consider:

• Supply and Demand

• Profit

• Competition and Market Structure

• Consumer Sovereignty

• Global Trade

• Entrepreneurship

• Government Agencies

Year 1

Trouble on the Farm

A coffee plant blight severely damaged crops in Central America, limiting supply and raising prices for green coffee beans.

• Guinan paid more for beans but didn’t raise prices.

• Customers noticed the taste change from using a backup supplier.

• Profits dropped.

Year 2

Trade Opens Up

A new U.S. trade agreement with Colombia lowered tariffs and increased access to high-quality beans.

• Guinan found a new supplier with better prices and quality.

• She launched a new drink and saw customers return.

• Profit margins improved.

Year 3

A Competitor Lands Nearby

A national coffee chain opened down the block.

• They offered mobile orders, rewards programs, and drive-thru service.

• Guinan lost customers who wanted convenience and cheaper prices.

• She launched a “Brew Local” campaign focused on quality and community, which helped a little.

Year 4

Public Pushback

The Environmental Protection Agency releases a study on the toxic effects of pesticides. A local activist group began protesting the use of pesticides in coffee farming.

• They claimed Guinan’s beans weren’t certified organic.

• Some customers stopped coming; others didn’t know what to believe.

• Switching to organic would cost 25% more.