Demand For Chocolate Creates Shortage

Question : (1)Assume that chocolate operate in a perfectly competitive market, use a well-labelled demand and supply (D-S) model to explain how market equilibrium price of chocolate is being determined. Please clearly explain the equilibrating process. (2)Using the D-S model, explain and illustrate what factors have caused the market price for chocolate to rise in the past two years. Clearly explain the equilibrating process. (3)What will happen to the market for other confectionaries/sweets as a result of the changes in the market price of chocolate? Make sure to use D-S model to discuss the equilibrating process. (4)Do you think the demand for chocolate is price elastic or price inelastic? Explain your answer based on the determinants of price elasticity of demand. Use your answer to discuss the likely impact of the drought on consumers total expenditure on chocolate. Answer : (1) Under Perfect Competition no single firm or single consumer can influence the price of the chocolate because of its negligible share in total supply or total demand of industry. However, price is determined by the collective action of all firms in the industry through the supply curve of the industry and the collective action of all the consumers through the industrys demand curve. Thus, short-run equilibrium price and quantity is determined by the interaction of market demand and market supply(Hall", 2014) The demand curve DD represents the aggregate demand of the industry for chocolate, and the supply curve SS represents the total supply of chocolate of the industry(WEXLER, 2014)Industry is in equilibrium at E where the total market demand for chocolate is equal to total market supply for chocolate. The equilibrium price is OP and equilibrium quantity is OQ. If price is above OP, say OP1, there is excess supply of chocolate which pulls down the price again to OP. On the other hand, if price is below OP, say OP2, there is excess demand for chocolate. As a result price would rise till it reaches the level of OP. At equilibrium E, there is neither excess supply nor excess demand and, therefore, the price has neither a tendency to fall nor a tendency to rise.(SULLIVAN, 2014) (2)The factors that contribute in the growth of the market price of the chocolate in last two years are as follows: -Increase in demand for the chocolate: the demand for the chocolate is much more in comparison to supply of the chocolate in the market which causes an upward push in the market price of the chocolate.(Wood, 2014) -Consumer taste and preferences: The level of market price for chocolate is also influenced by customer taste and preferences. Taste and preferences depends on social customs, habit of people, etc. Some of these factors like fashion keep on changing, leading to change in consumer taste and preferences. A favorable change in taste and preference of the consumer for chocolate increases its demand in the market, which ultimately leads to an increase in the price if the chocolate.(GASPARRO, 2012) -Decrease in supply: There is an upward trend in the price of the chocolate because of shortage in supply of the chocolate to meet its demand in the market. When the supply of the product is more than its demand, price decreases, whereas where the supply of the product is less than its demand, price increases.(Wells, 2013) One of the major cause for the increase in the price for chocolate is the increase in its demand in the market. The effect of change in demand is explained below: If supply remains constant, shift of demand curves i.e. change in the demand will result in the change in equilibrium price and equilibrium quantity. The effect of shift in demand curve on the equilibrium price can be illustrated with the help of a diagram In the diagram 1.2, D0D0 and SS are the initial demand and supply curves respectively. E0 is the equilibrium corresponding to the point of intersection of demand and supply curves. OP0 is the initial equilibrium price and OQ0 is the initial equilibrium quantity. Now, as a result of increase in demand, the demand curve shifts to the right from D0D0 to D1D1. At the original price OP0, quantity demanded now will be OQ3, but the quantity supplied will remain at OQ0. In other words, this will lead to excess demand to the extent of Q0Q3. This would exert an upward pressure on the prices as explained above. The price would continue to rise till it reaches OP1 where demand and supply will be equal to each other once again. Intersection of D1D1 with SS will give us the new equilibrium at E1, and OP1 and OQ1 will be the new equilibrium price and equilibrium quantity respectively. Thus, an increase in demand for a commodity i.e. a rightward shift in demand curve, causes an increase in both equi librium price and equilibrium quantity bought and sold. (3)The market for other confectionaries/sweets as a result of the changes in the market price of chocolates depends on the movement in the market price for the chocolate i.e. whether it is in upward direction or downward direction.(Morris, 2014) If the price of chocolate increases then the market for those sweets and confectionaries whose prices are lower in comparison to the price of chocolate and that can be substituted in place of chocolate increases, whereas the market for those sweets and confectionaries which are used as a complementary good with chocolate decreases.(Shah, 2003) The response of the market of other sweets/confectionaries depend on two situation: (a) Equilibrium Price of chocolate increases- When the relative increase in demand for chocolate is greater than its supply, the equilibrium price rises. From Fig. 1.3, it is clear that demand increases in larger proportion than the supply. Equilibrium is at E1 corresponding to the intersection of D1D1 with S1S1. Hence, price increases to OP1 and quantity to OQ1. Hence, when demand of chocolate increases more than its supply, price for the chocolate will rise which may indirectly lead to an increase in the market for those sweets/ confectionaries that can be used as a substitute in place of chocolate.(Hameed, 2009) (b) Equilibrium Price of chocolate decreases-When the relative increase in demand is smaller than the increase in supply, the equilibrium price falls. In fig. 1.4, supply for chocolate increases in a larger proportion than its demand. Equilibrium shifts from E to E1. Consequently, equilibrium price falls from OP to OP1, but equilibrium quantity increases from OQ to OQ1. Thus, when supply increases more than demand, the price for chocolate falls which causes an increase in its demand and indirectly reduces the market for other confectionaries/sweets which are used as a substitute in place of chocolate and increases the market for those sweets/confectionaries which are used as a complementary good with the chocolate. The demand for chocolate in the market is price elastic. A fall in the price for chocolate increases its demand in the market and vice-versa. The determinants for price elasticity of demand are as follows: 1. Availability of substitutes- The most important determinant of the price elasticity of demand is the number and kind of substitutes available for a commodity(Kazemi, 2010). If commodity i.e. chocolate has many close substitutes then its demand is likely to be more elastic. Even a small fall in price will induce more people to buy the chocolate rather than its substitutes. 2. Nature of the commodity-Demand for luxury items or victim that serves the comfort pleasure of the consumer tend to be more elastic than the demand for those goods which serve the basic needs of the consumer. And chocolate serves the comfort pleasure of the consumer.(DATAMONITOR, 2006) 3. The number of uses of a commodity- The greater the number of uses to which a commodity can be put to, the greater will be its price elasticity of demand and vice-versa. Chocolate can be used by the consumer as a main product or co-product in multiple uses.(Pearson, 2014) 4. Price Range- Price elasticity of demand depends upon the range of prices. Demand for a commodity tends to be inelastic at a very high price of the commodity and even it is inelastic at a very low price of the commodity, but is elastic within the moderate range in the price of the commodity. The prices of chocolates are neither too high nor too low thus the demand for chocolate is elastic.(Andreyeva, 2012) In the situation of drought, consumer behaves in an abnormal manner, they buy the commodity even at a very high price. Thus, in case of drought, even at a very high price of the chocolate consumers are ready to purchase them, thus causing an increase in the total expenditure of the consumer. The below given table shows how the total expenditure increases with the increase in the price of chocolate in the situation of drought.(Schatzker, 2014) Price of the chocolate (P) Quantity demanded (Q) in pieces Total Expenditure (P*Q) 50 10 500 70 15 1050 References: Andreyeva, T. (2012). The Impact of Food Prices on Consumption. PMC , 1-3. DATAMONITOR. (2006). CONFECTIONERY: Chinas Sweet Tooth Grows. Asia Food Journal , 1. GASPARRO, A. (2012). People Love Chocolate At Any Price. Money Beat , 1. Hall", ". (2014). demand for chocolate in perefectly competitive market. Business studies , 685. Hameed, A. A. (2009). Supply and Demand Model for the. MPRA , 1-20. Kazemi, F. (2010). A Case Study of Chocolate Industry . International Journal of Business and Management , 1-5. Morris, J. A. (2014). The trend that could transform the chocolate industry. KPMG , 1-20. Pearson. (2014). price elasticity of demand. the sloman economics , 1. Schatzker, M. (2014). Chocolate imperiled by drought, disease as demand rises. The State journal , 1. Shah, A. (2003). change in the equilibrium price. Global Issue , 1. SULLIVAN, K. (2014). Dark chocolate demand causes cocoa shortage. The Exponent , 1. Wells, E. E. (2013). Shortage of cocoa beans may lead to price increase. The Journal , 1. WEXLER, A. (2014). demand for chocolate. Wall street Journal , 1. Wood, P. (2014). Inflation, cocoa bean shortage spur rise in chocolate prices. Auburn , 1.

Mythology Zeus and Achilles free essay sample

However, despite all their strength and authority, neither Zeus nor Achilles appears capable of eschewing or defying the omnipresent power that holds more sway than them: fate. Sans doubt, once a human is dealt his hand, there is nothing that he can humanly do in order to prevent his fate. As for the gods, with all their power and independence, they are still undeniably bound by the hands of fate. Fate is a peculiar phenomenon in that it has no limitations, yet it is a fixed occurrence that does not change over time or through the progression of different events that may influence it. Powerful men and gods such as Achilles and Zeus may do as their hearts and minds desire, because there is no one who can stop or defy them. Thus, the role of fate becomes clear, since fate is without desire or mind; its existence is to curb the ridiculous and emotional wishes of powerful beings who cannot be stopped otherwise. We will write a custom essay sample on Mythology: Zeus and Achilles or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Fundamentally, there is no god or man stronger or more powerful than Zeus; he is capable of doing whatever he wants, whenever he pleases. Given this omnipotent ability, all his desires should become immediate manifestations, yet this would only lead to chaos due to the lack of limitations on freedom. There are multiple times during the events of The Iliad that begin with Zeus seriously contemplating using his unlimited power to fulfill his desires yet ultimately ends in his freedom being restricted by fate. In one scene, Patroclus in a blaze of raw magnificence and strength is battling Sarpedon, the son of Zeus. It becomes apparent that the mightier and glory-driven Patroclus will overpower and kill Sarpedon. Zeus is obviously most distressed and sorrowfully states, â€Å"My cruel fate†¦my Sarpedon, the man I love the most, my own son-doomed to die at the hands of Meoetius’ son Patroclus. My heart is torn in two as I try to weigh all this. Shall I pluck him up, now, while he’s still alive and set him down in the rich green land of Lycia, far from the war at Troy and all its tears? † (Iliad 16. 514-520) It is apparent than Zeus could have easily saved Sarpedon in numerous ways, yet he cannot defy the fate of the doomed Sarpedon. In another scene, almost identical to the first, Zeus laments the ill-fate of Hector as he is chased by the vengeful Achilles: â€Å"Unbearable-a man I love, hunted round his own city walls and right before my eyes. My heart grieves for Hector†¦Come, you immortals, think this through. Decide. Either we pluck the man from death and save his life or strike him down at last, here at Achilles’ hands-for all his fighting heart† (Iliad 22. 201-209). Once again, Zeus begins with the desire to save Hector from the enraged Achilles, but he is reminded by Athena of the hand of fate that has been drawn for Hector. In order to remind Zeus of Hector’s fate, Athena protests, â€Å"Father! Lord of the lightning, king of the black cloud, what are you saying? A man, a mere mortal, his doom sealed long ago? † (Iliad 22. 211-214) Upon hearing her objections, Zeus halts his urge to save Hector and realizes that he cannot challenge fate, unless he wants to create total chaos among the gods of Olympus. On the human side, there is the swift runner Achilles who is revered as the greatest warrior amongst the Achaeans. In battle, he is fearless and unmatched; his presence alone sways the very tide of the war. Granted that he is a match for any Trojan soldier and could simply win the war for the Achaeans, his freedom is still restricted by his destiny. When the Achaeans are being routed time and time again by the Trojans, Agamemnon sends an embassy of his finest men in order to persuade Achilles to rejoin the Achaeans in fighting the Trojans. Achilles adamantly refuses the offer and reveals his fate to the embassy: â€Å"Mother tells me, the immortal goddess Thetis with her glistening feet, that two fates bear me on the day of death. If I hold out here and I lay siege to Troy, my journey home is gone, but my glory never dies. If I voyage back to the fatherland I love, my pride, my glory dies†¦true, but the life that’s left me will be long, the stroke of death will not come on me quickly† (Iliad 9. 498-505). Undoubtedly, the prophecy that Achilles receives from his mother weighs heavily upon him. Although he is given the unique opportunity in choosing his fortune, neither option is wholly desirable or undesirable. Consequently, for a large portion f The Iliad, his fickleness with his fates cripples him and renders him paralyzed from being the mighty, unconstrained warrior that he is known and meant to be. Moreover, when the death of his beloved friend Patroclus rouses Achilles to arms, he is deterred by fate from carrying out his impulse to sack the city of Troy. Zeus plots with the other gods to prevent the enraged Achilles from annihilating Troy and rationalizes his decision by stating, â€Å" If Achilles fights the Trojans-unopposed by us-not for a moment will they hold his breakneck force. Even before now they’d shake to see him coming. Now, with his rage inflamed for his friend’s death, I fear he’ll raze the walls against the will of fate† (Iliad 20. 32-36). It is not fated for Achilles to sack the city of Troy; therefore, the gods convened to prevent him from opposing his fate. Moreover, this fate coincides with the original prophecy that his mother told him: if he stayed in Troy and fought, he would gain eternal glory but would die in the battlefields of Troy. In my own opinion, I believe Homer wisely uses the device of fate as a regulator of the limitless power of Zeus and Achilles. Without fate to check their sometimes emotional desires or impulses, the epic of The Iliad would be a ridiculous story that tells of nothing more than the infinite power of two men who do whatever they please and cause chaos in the trail of their emotional whims. Luckily, there is the aspect of fate which adds a sense of organization to the plot. The fact that the two powerful men are constrained by fate does not make them any less powerful, but rather, exemplifies their determination to carry out their desires despite the fate they have been handed. -Paper by LucSilverz

Easy Essay Topics For Middle School Students

Easy Essay Topics For Middle School StudentsEasy essay topics for middle school students include subjects such as history, literature, religion, philosophy, government, and mathematics. These are just a few of the different subjects that you can address in your essays. However, if you are looking for more choices, there are other topics that you may choose to use, such as poetry and a lot of other topics that are not usually taken up in high school.Middle school students have a lot of things that they are interested in, and you can take advantage of that by providing them with topics that are more interesting than what most other students will be covering in their coursework. They are looking for something to get excited about, and you can provide that in your essay. By including easy essay topics for middle school students, you can provide them with topics that they will find exciting.There are a number of different ways that you can use easy essay topics for middle school students. One of those ways is to give them something that is of interest to them, and to include a topic that will show some personalization to it. For example, if you chose a topic like history, you can include several of the major figures of the era, or you can include aspects of the period such as special events that are important to the people of that time period.You can also take advantage of topics that are more personal, by giving them topics that relate to their own life. This can include things like family and relationships. It can also include the way that they see their own future. By helping them to look at these issues, you can help them learn more about how to analyze and reason.The types of subjects that you can use to create easy essay topics for middle school students include ones that are in today's culture. You can choose topics that are familiar to them and will be interesting to them. This can include different types of music or stories about celebrities. You can also u se pop culture to create topics for them to discuss in their essays.When you use topics that are in today's culture, you will find that there are many more students that will be interested in writing essays based on these topics. As a result, you will have more students working on the essay that you have created, which means you will have a higher grade. This is due to the fact that students will take notice of the unique and interesting themes that you have created for them.It is also important that you give easy essay topics for middle school students that you choose, because you want them to have something to talk about in their essays. This is why you should select topics that are something that they enjoy. This will help them to have something to talk about in their essays, as well as make them think about the topic for quite some time.Easy essay topics for middle school students can be used for any type of topic that you want to choose. If you are a history teacher, you can ch oose to discuss aspects of the Civil War, or you can choose topics that are more commonly used in this age group. These are the types of topics that you can choose to cover in your essays.

England and Ireland essays

England and Ireland essays To understand this current situation, we will have to go back in history. There are three critical dates which lead to the situation today. Those dates are: 1170, 1609, and 1969. In the next paragraphs I will briefly explain what was going on in each of these years. To begin with, in 1170, Henry II ruled England. He attempted to attach Ireland to his kingdom. However, he only established control in a small area near Dublin known as the Pale. In that particular area, English citizens started moving in and adapting the English language, religion, practices, beliefs, and etc. Attempts were made to conquer the rest of Ireland, but major English expansion did not take place until the seventeenth century. In 1609, Queen Elizabeths army had established the English rule over most of the island of Ireland, with the exception of the Northern Province: Ulster. The Ulster clans (Lead by Hugh ONeil) had a very affective alliance against the English army. Unfortunately, after a long and damaging campaign, it was eventually brought under English control in 1703. By then, all the Irish leaders had left Ireland for Europe, and less than 5% of Ulster was controlled by Catholics Irish. Later on, in 1969, the restlessness in Northern Ireland really started. In this year, the minority demanded better job opportunities, accommodation, and rights for voting. In reaction to this, the British government introduced a new law which prohibited religious discrimination and cancelled the law of 1922. In reaction to that, in the 1970s, the IRA (Irish Republic Army) began their terrorist reactions. The problems in Northern Ireland are practically from the difference in religion. There are two main camps, the Unionists and the Republicans. The Unionists are Protestant Christians, and the Republicans are Catholic Christians. Northern Ireland was created by the English as an attempt to stop the fighting. The idea was that as the Protestants...

Reparations in The United States Essay Example | Topics and Well Written Essays - 2500 words

Reparations in The United States - Essay Example According to the study  the life challenges the African American are facing today are because of slavery, and the life they underwent during slavery.  This is because they were taken from their homes in Africa, and abused in America by a regularity that ruined the structure of their families, as well as destroying the individual. When the American decided to end slavery,   the African   American were left with nothing, denied education, segregated making them experience a lot of economic challenges. Compared to the Europeans, the African American remained disadvantaged in the society, and it is said that they are likely to remain like that until the government compensates them.From this essay it is clear that the provided welfare and affirmative action, as well as other effort established to address socio economic challenges of the African Americans have been too small.These efforts have failed because the society has failed to tackle the main challenge affecting the African American people. This is because of racism and discrimination they present to the African American people.  To some extent the social welfare programs were established   for good intentions. However, have largely contributed to the isolation of the African American people, and further destroyed the African American society. Furthermore, the established programs only benefited other people leaving out the African Americans.   Ã‚  ... Compared to the Europeans, the African American remained disadvantaged in the society, and it is said that they are likely to remain like that until the government compensates them.7 3 The provided welfare and affirmative action, as well as other effort established to address socio economic challenges of the African Americans have been too small.8 These efforts have failed because the society has failed to tackle the main challenge affecting the African American people. This is because of racism and discrimination they present to the African American people.9 To some extent the social welfare programs were established for good intentions. However, have largely contributed to the isolation of the African American people, and further destroyed the African American society. Furthermore, the established programs only benefited other people leaving out the African Americans.4 Supporters for reparations noted that, reparations were not going to promote dependence. However, they were going to offer the African American people an opportunity to develop their own economic foundation and become independent.10 According to McCarthy, reparations were meant to restore past injustices, to amend the harms imposed, and to socialize their victims. This is because several existing African Americans went to isolated schools that had limited resources. In other circumstances where they went for higher education, then it was upon them to choose a black collage or not attend college at all.11 The African Americans experienced discrimination in job appointments, and they experienced poor access of information. They were categorized as second class citizens in the United States. McCarthy noted that this reparation took two forms the collective compensation and collective

Strategic HRM Essay Example | Topics and Well Written Essays - 500 words

Strategic HRM - Essay Example HRM is about the competitive advantage to be gained from making the most of an organisation's human resources. But ,it is obvious that there are constraints of availability of suitable people which is heavily dependent on environmental variables like the effects of world and national economic conditions for business growth , the effect of inflation on the perceived value of wages ,traditions of local business culture and a particular nature of national employment markets. These variables have a 'macro' effect on the utilization of human resources. Identifying the relationship between HRM and strategy is simpler in theory than in practise. Organisations may take a variety of approaches towards HR and strategy ,ranging from those which give no consideration whatsoever to human resources to some where HR becomes the driving force. The significant issue in HR strategy is that of integration with overall business strategy. The idea is to emphasize the need for human resource practitioners to achieve an understanding of how business strategies are formed.

Liberalism by Immanuel Wallerstein Essay Example for Free

Liberalism by Immanuel Wallerstein Essay This article tries to analyze the works of Immanuel Wallerstein (after liberalism) mainly on his views of what liberalism is especially in this era of globalization. After liberalism published in 1995 and it is a collection of essays, which all look at the issue of international capitalism either from a country’s perspective all from the perspectives of earlier influential writers within this context like V I Lenin. The book gives a good overview of the nature of liberalism especially in the context of international capitalism. In his analysis, Wallerstein argues that the emergence of theories like liberalism in modern times was all because of new beliefs within the political arena as well because of people’s moral sovereignty. Among the theories, Wallerstein claimed that in a modernizing world there were people who saw the changes as immoral. These people pursued Consevativism. Because of the rise of conservatism, the liberalist theory arose to defend the modernizing processes of new technologies new ways of integration as being non-expedient processes for a better global society. After the rise of liberalism and its application, a new theory emerged (socialism). Unlike the conservatisms, socialists did agree with the liberalists that the issue of modernization or progress was both desirable and inevitable. However, unlike the liberalists socialists were strongly suspicious of the top-down system of reforms advocated by liberalists. Liberalism: This broad field encompasses many different ideas and theories concerning the roles of governments. Liberalism generally advocates for individual liberty, mixed market systems, liberal democratic governments (transparent) as well as the application of the rule of law. International capitalism: international capitalism is the system of processes that allow for the growth of globalization. It is the practice of capitalism on a global perspective. Thus, it involves the international ownership of modes of production by individuals and the unrestricted transfer of international funds and investment projects globally. In his argument, Wallerstein claims that the classification of third world countries is uncalled for. This is because as he says the so called third world has been intertwined in the structure of international capitalism in such a way that there are even subsidiaries of multinational firms based in the third world countries that contribute money to the parent company countries that is in excess of what the parent companies pay. After liberalism is quite clear on the issue of national development. Wallerstein goes ahead in Borrowing ideas from such authorities as Adam smith (the wealth of nations), as well as ideas from people like Vladimir Lenin and Paul Kruger. Wallerstein concludes that even with the advent of international capitalism and globalization, the issue of national sovereignty and national development is very crucial in ensuring that the vices of capitalism are always kept to a level minimum. CONCLUSION: After liberalism is an authoritative collection of essays that tries to expose the nature and processes associated with international capitalism and globalization. However, the book fails to explain issues of under development especially in the third world more clearly. In addition, the process of colonization and its impacts on both the colonizing states as well as the colonized should have been analyzed. This is because issues of international capitalism affect all nations alike and thus the root causes of under development in some of the countries would have to be addressed. REFERENCE: Wallerstein Immanuel (1995), after liberalism, new press, New York.