Ivory+Coast+chocolate+prices+to+rise+if+Ivory+Coast+stalemate+remains


 * Ivory Coast: chocolate prices to rise if Ivory Coast stalemate remains**

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 * Title**: Ivory Coast: chocolate prices to rise if Ivory Coast stalemate remains
 * Source**: (telegraph.co.uk)
 * Date**: 18 Feb 2011


 * Explanation**: This article is about how the price of cocoa beans in the foreign countries has increased because of the social unrest in the Ivory Coast, which is a country that is a main producer of chocolates. The government of Ivory Coast stopped foreign exchange, there might be cocoa bean shortage in the U.S and the price of chocolate might increase. The cost for selling a tonne of cocoa beans before the November 28 elections was £1,879, and recently, cocoa beans are selling at £2,193 a tonne. From the demand and supply graph below, one can see the political crisis stopped foreign export of cocoa beans, this moves the supply curve from S1 to S2, decreasing the quantity of beans and increasing the price.



- Supply- The willingness and ability of producers to produce a quantity of a good or service at a given price in a given period of time. - Demand- The quantity of a good and services that consumers are willing and able to purchase at a given price in a given time period - Determinant of supply- A factor that determine supply and lead to an actual shift of the supply curve to either the right or the left. - Government intervention- a determinant of supply - Equilibrium price- Price at which the supply of goods equals demand. - Law of supply- The law states that as the price of a product rises, the quantity supplied of the product will usually increase, ceteris paribus - Ceteris paribus- An assumption that means all other things being equal - Scarcity- Excess of human wants over what can actually be produced
 * Vocabulary:**

As an economist, I think that if the Ivory Coast does not stop the political crisis, the price of cocoa beans in foreign countries will continue to increase, moving the supply curve more to the left. This will further increase the price and decrease the quantity. On the demand and supply graph above, moving from S2 to S3. To fix this problem, foreign governments can persuade the Ivory Coast government to start foreign exchange of cocoa beans again, this will move the supply curve back from S3 to S2 or from S3 to S1. If this can be done, the quantity of the beans will increase (from Q3 to Q2 or from Q3 to Q1), and the price will decrease (from P3 to P2 or from P3 to P1), benefiting many chocolate lovers. Another solution could be that the foreign governments can start to produce the cocoa beans themselves and this will also increase the supply. The supply curve will move from S3 to S2 or from S3 to S1.
 * Evaluation:**