Please Solve the question no 4 Additional case study: Government interventionThe price of raw sugar recently reached its highest level since 1981 due to problems withsupply. Historically, raw sugar has traded at between 10 and 12 US cents per pound atthe New York Board of Trade. But the price increased to over 18 cents last month.Growing demand in Brazil for sugar to be turned into ethanol for fuel, coupled with a sharpfall in Indian production have both been factors in the price increase.Sugar production in India for 2008-09 fell 45% year-on-year due to less rain in themonsoon season damaging a number of agricultural crops.The London-based International Sugar Organisation predicts that global consumption ofsugar is likely to outstrip production by 9m tonnes next year, forcing food companies andgovernments to dig into stockpiles. In the US, snack producers including Mars, Nestlé andKrispy Kreme Doughnuts put pressure on the US government to relax import controls,warning that otherwise they might run out of sugar.Commentators predict that most shoppers will be unaffected because sugar is such asmall part of a consumer's typical spending in a week that no one will notice an increasein price.Source adapted from: http://news.bbc.co.uk/1/low/business/8193390.stmQuestionsExplain, using supply and demand analysis, why the price of sugar has beenincreasing recently.1.Do you think a) the supply and b) the demand for sugar is price elastic or inelastic?Justify your choices and explain whether this means any given change in supply ordemand will have a bigger effect on the equilibrium price of quantity.2.3.In what ways is the market for sugar used in confectionery related to the market forethanol?How might companies such as Mars and Nestlé react to an increase in the price ofsugar?4.OXFORDUNIVERSITY PRESS

“Since you have asked multiple questions, we will solve the first question for you. If you want any…

Answered: How might companies such as Mars and…

Business

Economics

How might companies such as Mars and Nestlé react to an increase in the price of sugar?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Q6The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008. Prices and Quantities Year Price of Cereal Quantity of Price of Milk Quantity of Milk Cereal 2008 $4.00 90 $1.50 150 2009 $4.00 100 $2.00 180 2010 $5.00 120 $2.50 200 2011 $6.00 150 $3.50 200 Refer to Table 10-4. In 2008, this country's a. nominal GDP was greater than real GDP, and the GDP deflator was greater than 100. b. nominal GDP was equal to real GDP, and the GDP deflator was equal to 1. c. nominal GDP was less than real GDP, and the GDP deflator was less than 100. d. nominal GDP was equal to real GDP, and the GDP deflator was equal to 100,
using the images below answe the question
Talk about unemployement rate in nz for upcoming 5 years ?
Typed please and asap please give solution minimum in 2 steps thanks
Calculate and complete columns (3), (4), (5), (6) and (7) as instructed by quiz question # 8. (1) (2) (3) (4) (5) (6) (7) Quantity of Total Labor Product 10 50 11 54 12 60 13 64 14 66 15 67 Use this area for calculations if needed and to answer Q10
The initial population of a town is 5 000, and it grows with a doubling time of 8 years. What will the population be in 12 years?
Econometrics and forecasting What is unit root problem? How does one solve the problem of unit root?
ook The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC, the MTR, and the MPM are all constant, as are the values of the three injections. a. Complete the table below. Mc Graw Hill 10 Y 0 108 200 300 400 500 600 700 800 S T 800 201 40 60 80 100 120 140 160 180 YD 60 20 140 220 300 380 460 540 620 C 65 130 195 260 325 390 455 520 S The Economy of Arkinia -20 -5 10 40 25 55 70 100 85 I 50 50 50 50 50 50 50 50 50 Tools O Search G < Prev 180 180 180 180 180 180 180 180 180 X 50 50 50 50 50 50 10 of 10 50 50 50 AT IM www 40 50 60 10 20 30 70 Next 80 90 XN 38 30 -40 Draw a 45° line (labelled Y) and the aggregate expenditure function, labelled AE₁. Identify expenditure equilibrium with the letter e₁. Use the tool "el" to show the expenditure equilibrium. Plot only the endpoints of Y and AE. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points…
How do I solve the following problem?
Also write interpretation of answer and give real life example.
PLS HELP ASAP ON BOTH
please give me correct answer with calculation