How would I draw a diagram to show the change in the retail coffee market that has resulted from cirucumstances described below?The days of the $3...

What you will need to do in this case is to draw a supply
and demand graph.  You will need to use the graph to show the change in the
market.

First, of course, you will need a graph
representing how the market used to be.  You will simply need to draw a supply curve and
a demand curve that intersect at some point (perhaps $3 per cup since that is the
equilibrium price mentioned in this question.

Next, you
will need to draw a second supply curve reflecting the changes that have happened in the
market.  The change that has occurred is a decrease in supply.  The reason for this is
that the cost of inputs for a cup of coffee (beans, rent, milk, transport costs) have
all gone up.  We know that, all other things being equal, an increase in the cost of
inputs leads to a decrease in supply.  So, you will need to draw a second supply curve
to the left of the original.

Once you have done this, you
will note that the equilibrium price of coffee has risen and the equilibrium quantity
(supplied and demanded) has gone down.  This is the change in the retail coffee market
that has occurred due to the changes mentioned in the question.