ZuoTi.Pro
Question

Paul was discussing the market for cocoa beans with his friend John. Paul said, "Ever since...

Paul was discussing the market for cocoa beans with his friend John. Paul said, "Ever since Venezuela announced that its cocoa harvest was its lowest ever in fifteen years, the price of cocoa beans has been rising and rising and people are buying more and more. I think the demand for cocoa beans must be upward sloping." Is Paul right? Briefly explain why or why not.
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer:

No, Paul is not right.

The reason is that there is a change in demand due to the change in expectations; and Paul has considered the change in demand as a result of a change in price.

As there is a change in expectations, thus anticipation of higher prices in the future would cause the demand for Cocoa to increase. When both price and quantity demanded increase it causes to a higher equilibrium price.

As long as people expects that the price of cocoa beans will increase in the future there would be a rise in demand today.

Please dont forget to like the answer..if its helpful to you...

1 0
Add a comment
Know the answer?
Add Answer to:
Paul was discussing the market for cocoa beans with his friend John. Paul said, "Ever since...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The purpose of the Assignments is to assess the student’s ability to apply the economic concepts...

    The purpose of the Assignments is to assess the student’s ability to apply the economic concepts learned in each unit to practical problem-solving scenarios. Instructions Students are to complete the exercises in Word (or some other compatible word processor) and submit for evaluation. Questions 1.       John was discussing the market for cocoa beans with his friend Kim. John said, "Ever since Venezuela announced that its cocoa harvest was its lowest ever in fifteen years, the price of cocoa beans has been...

  • Question to the Scenario below: Keeping in mind that it takes time/energy to implement systems to...

    Question to the Scenario below: Keeping in mind that it takes time/energy to implement systems to retrieve data, which HR metrics should start Paul capturing? Scenario: “John, our production numbers are getting worse,” said Roy, who is John’s manager at the small plastic molding company. “What’s going on?” “ We've laid off several people in my area,” replied John. “Can't you get them to work harder? asked Roy. “Before the layoff, we had a lot of people quitting,” said John....

  • Coffee Cravers Ignoring Bean-Price Surge for Caffeine Fix by Marvin G. Perez and Lynn Doan Coffee...

    Coffee Cravers Ignoring Bean-Price Surge for Caffeine Fix by Marvin G. Perez and Lynn Doan Coffee Cravers Ignoring Bean-Price Surge for Caffeine Fix Marvin G. Perez and Lynn Doan March 13, 2014, 5:17 PM EDT Doreen Cappelli is so hooked on her morning cappuccino that she says she’d pay a lot more to get it. “I don’t drink wine and alcohol,” Cappelli, 52, said after buying the $3.25 drink at Blue Bottle Coffee at San Francisco’s Ferry Building, in the...

  • In your view,is the kind of child slavery discussed in this case absolutely wrong no matter...

    In your view,is the kind of child slavery discussed in this case absolutely wrong no matter what,or is it only relatively wrong,ie.,if one happens to live in a society(like ours) that disapproves of child slavery? Explain your view and why you hold it. Forty-five percent of the chocolate we consume in the that a portion of the Ivory Coast cocos beans that goes into United States and in the rest of the world is made from co- the chocolate we...

  • Analyse the managerial challenges that Unilever CEO Paul Polman has encountered in the developmen...

    Analyse the managerial challenges that Unilever CEO Paul Polman has encountered in the development and implementation of the Unilever Sustainable Living Plan (USLP) Strategy: PART A - Identify the Planning and Controlling issue There are essentially three topics (and consequently three problems) that will be covered in this assignment: planning and controlling (together) leading organising Article Below: Unilever’s New Global Strategy: Competing through Sustainability In January 2015, CEO Paul Polman announced Unilever’s financial results for 2014. (See Exhibit 1.) It...

  • John Beckett enjoys vegetables, so much so that he has given up his full-time job as...

    John Beckett enjoys vegetables, so much so that he has given up his full-time job as a lawyer to concentrate on growing and marketing organic vegetables. He started growing vegetables 20 years ago in his back garden and eventually became fully self-sufficient in supplying vegetables for the family. Partly bored with his legal job and tempted by an attractive severance package, John decided he would try to establish his own vegetable supply business. Eighteen months ago he looked around for...

  • Refer to the assigned article “In a Bean, a Boon to Biotech” (Pictures of article are underneath). 1A. (200 words or less) The article states “Both Monsanto’s Vistive Gold soybeans and DuPont Pioneer’...

    Refer to the assigned article “In a Bean, a Boon to Biotech” (Pictures of article are underneath). 1A. (200 words or less) The article states “Both Monsanto’s Vistive Gold soybeans and DuPont Pioneer’s Plenish soybeans are engineered to silence the gene for an enzyme that converts oleic fatty acid into linoleic acid.” These products were developed 10 years ago. Describe in conceptual detail : 1) how the gene silenced soybean was likely produced (100 words). 2) how the gene silenced...

  • please answer the question after reading the below article Please note that the answer should be in your own words.........

    please answer the question after reading the below article Please note that the answer should be in your own words....... What do you think? Consider the history of prisons in the U.S. and our cultural history. Why does the U.S. seem to have a much greater need to punish people as compared to other western nations?? Article is below; Norway Mass Killer Gets the Maximum: 21 Years OSLO — Convicted of killing 77 people in a horrific bombing and shooting...

  • Questions: 1. What trends are happening as it relates to consumer retail purchases, online vs. in-store?...

    Questions: 1. What trends are happening as it relates to consumer retail purchases, online vs. in-store? 2. What challenges do traditional retailers face in trying to transition from in-store sales to online sales? 3. List and briefly describe at least three of the strategies that Target has implemented in its staffing system to better accommodate online sales. 4. What are the career implications of the trends described in this article? 5. From a consumer perspective, what are the relative advantages...

  • Question 1: Why did Campbell’s soup fail to attract the Russian soup market in spite of...

    Question 1: Why did Campbell’s soup fail to attract the Russian soup market in spite of favorable initial market research results and a seemingly suitable product for the targeted market? (Response length: 1 paragraph) Instructions: Identify, define, apply, and underline three (3) relevant concepts from chapters 1, 3, 4, and/or 8 in your response to question 1. Avoid vague generalizations. Be specific and stick to what the question is asking. Avoid irrelevant arguments. Be sure to analyze this issue from...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT