The purpose of this paper is to evaluate the role of prices in determining demand for
roasted coffee in Sweden. This is of interest because many believe that consumer
prices are high relative to green coffee-bean prices, and that lower consumer prices
would increase demand for coffee beans. Coffee demand is estimated on data for the
period 1968-2002. In the long run, changing preferences appear to determine demand
for roasted coffee, and a reduction in consumer prices would only have a temporary
impact on consumption. Hence a permanent decrease in consumer prices would only
increase exports of coffee beans to Sweden for a couple of years.