Question.  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 rising and rising and people are buying more and more. I think the demand for cocoa beans must be upward sloping." Is John right? Briefly explain why or why not.

Question

Question.  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 rising and rising and people are buying more and more. I think the demand for cocoa beans must be upward sloping." Is John right? Briefly explain why or why not.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Related Economics Q&A

Find answers to questions asked by students like you.

Q: Will consumers always spend the same percentage of any tax cut?  Why might they spend more or less t...

A: Answer - Consumers will not always spend the same percentage of a tax cut. This is mean that, consum...

Q: Under perfect competition, individual firms have no control over price. Therefore, the firm’s margin...

A: Under perfect competition, individual firms have no control over price. Therefore, the firm’s margin...

Q: Suppose that disposable income, consumptio, and saving in some country are $ 200 billion, $ 150 bill...

A: (a)It is given that,Initially, Disposable income (Yd) = $200 billion, Consumption (C)= $150 billion,...

Q: What is numbers 1-5?

A: Dear student, thank you for submitting your question. Since we only answer up to three sub parts, we...

Q: Question 24 Consider the following production function when K is fixed. (This is a description of th...

A: False, the production function does not satisfy the law of decreasing marginal returns to labor.

Q: NAME: Chapters 2 & 3 Problem 1 Remember to show all work and briefly discuss your results. Minutes N...

A: The opportunity cost is the best alternative use of a resource. It is the value of what one has to g...

Q: (7 Points) Consider the following market for flash drives. Price   Quantity supplied  Quantity dema...

A: Click to see the answer

Q: Help Sav 0 Homework Saved The investment demand curve for a country is shown on the graph below. Sup...

A: The investment demand curve reflects a negative relationship between investment demand and interest ...

Q: Using the following table with the resources and their cost per unit, which production choice would ...

A: The primary objective of any business entity is to maximize profits. Thus, to earn high profit a bus...

Q: What are the major characteristics of a firm competing under conditions of monopolistic competition?...

A: 1.The monopolistic competition is the market condition in which there are many producers and they se...

Q: substitute good, increases, while all other factors remain constant. Explain the change(s) in the eq...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3.Please resubmit the question and sp...

Q: If mortgage rates fell to 0 percent ("free money"), why might consumers still hesitate to borrow mon...

A: In general, the term mortgage rates refer to the interest rate charged by the financial institution ...

Q: Using the aggregate demand and aggregate supply model, explain the effects of the following on price...

A: Aggregate demand curve reflects the equilibrium in the IS-LM model at the different price levels of ...

Q: Suppose the California legislature passed a sweeping law to lower the number of regulations for buil...

A: In this case sweeping law will empowers California government to make necessary law and give proper ...

Q: Question 27 Consider the firm whose MC, AC, AVC, AFC functions are shown in the following graph. (Th...

A: The Marginal cost, Average cost, Average Variable cost and Average fixed cost curves of the firm are...

Q: Economic growth. Two key sources of economic growth have been due to increases in resources and incr...

A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session. ...

Q: Two individuals, Sam and Barb, derive utility from the hours of leisure (L) they consume and from th...

A: To determine how there can be fewer leisure activities spend would be associated with the more hours...

Q: Output (Bushels of Marginal Cost (Dollars ) Barley) 10 bushels $e.30 20 bushels $e.60 30 bushels $e....

A: The marginal cost is the additional cost of production when one additional unit of output is produce...

Q: Consider the following graph of a production function when capital is constant. (The following is a ...

A: Marginal Product of Labor (MPL) represents the change in total output resulting from employing an ad...

Q: Brief explanation on keynesian model and its diagram

A: Aggregate Demand: It refers to the total demand for goods and services in the economy within a given...

Q: Refer to Figure 2. It shows the imposition of a per-unit tax on the market for cigarettes. S = Marke...

A: The initial demand curve and initial supply curve intersects at point F which is the equilibrium poi...

Q: Illustrate how changes in investment (or other components of total spending) can increase or decreas...

A: Multiplier – Multiplier means that a change in economic factor leads to a change in another economic...

Q: Consider a monopolistically competitive market with N firms. Each firm's business opportunities are ...

A: Hey, Thank you for the question. According to our policy we can only answer 3 subparts per question....

Q: Complete the following table and answer the short discussion question Marginal Cost (MC) Total Outpu...

A: The total fixed cost (TFC) is the cost incurred when the output production is zero. Therefore, at ze...

Q: What are the major characteristics of a firm competing under conditions of monopoly?

A: Some important characteristics of monopoly market are listed as follows. 

Q: Why doesn’t the change to equilibrium happen immediately when there is surplus in the market?

A: Demand: It refers to the quantity of a commodity that the consumer is willing and able to purchase a...

Q: [Indifference Curves] Consider the utility function U(C1, C2) and B 1 In(C1)BIn(C2) 1. Using a progr...

A: The given equation is : U=ln(C1) + Bln(C2)We know, ln(C1) + ln(C2) = ln(C1*C2)

Q: ter 12 Homework Saved Help Save & Exit Suppose that consumer spending initially rises by $5 billion ...

A: Given-consumer spending initially rises by $5 billion for every 1 percent rise in household wealth a...

Q: (3) Analyze the following statement: Federal farm price supports can never achieve their goals becau...

A: Yes, the given statement is true.

Q: What are some of the major trading regions?

A: To identify some of the major trading regions.

Q: Think about the market for parking spaces in downtown LA. There is little flexibility in terms of ch...

A: a.When the demand for the parking lot is high in the town and the availability of the parking slots ...

Q: At quantities less than the long-run minimum cost per unit of output, the long run average total cos...

A: At quantities less than the long-run minimum cost per unit of output that is quantities less than Q ...

Q: true or flase question, would like to check my answers thanks! 1. Models are simplificatins that are...

A: The statement that models are a simplification of the real world to see the working of a system is T...

Q: Assume you are an economist at Reserve Bank of Vanuatu. The government has been considering tax refo...

A: Change in tax influences the interest rate, savings and volume of investment. That is, if government...

Q: A) What is the value of the marginal propensity to consume? ( Round your answers to one decimal plac...

A: The completed table is shown below:

Q: Graphically show the effect of an increase in the cost of the tomato sauce on the equilibrium price ...

A: A complementary good is defined as a good that could be equally be used about the other complementar...

Q: In a closed economy, if Y and T remained the same, but G rose, and C fell but by less than the rise ...

A: Private Saving can be calcuklated as:Private Saving = GDP - Consumption ExpenditurePrivate Saving = ...

Q: 1. Calculate the inflation rate. 2. Re-do parts b)-d), but use year 2 as the base year. How do your ...

A: Hi there! Thankyou for the question. As per the honor code, we are authorized to do one question at ...

Q: How does a demand curve differ in perfect competition from a demand curve in a monopoly?

A: To show the difference between the demand curve under perfect competition and the demand curve under...

Q: a)Explain on the impact of a drop in the discount rate on the supply of money in the market. b)Based...

A: Money supply refers to the total stock of money in circulation at a point in time and the money supp...

Q: What is the difference between total and marginal product?     Total product is the output pro...

A: To determine the difference between Total Product (TP) and Marginal Product (MP).

Q: Is the minimum wage helpful to the long-term development of society? Explanation:According to my rea...

A: Minimum wage is minimum amount of remuneration that the employer should pay to the employees. The im...

Q: Suppose that price is below the minimum average total cost (ATC) but above the minimum average varia...

A: In perfect competition, every seller in the market would be a price taker. A perfectly competitive f...

Q: 57 In 1970, Professor Plum earned $12,000; in 1980, he earned $24,000; and in 1990, he earned $36,00...

A: Option (a) is the correct option that is real income earned by professor plum is highest in the year...

Q: How can businesses determine the attractiveness of a foreign market?

A: The term market attractiveness is a concept that practices many factors to determine whether or not ...

Q: Which delivery system would you choose for each of the following 5 scenarios (AND WHY), if the item ...

A: Projects are temporary in nature. They are not an everyday business process and have definitive star...

Q: When unwanted inventories pile up in retail stores, how is production affected?  What are the steps ...

A: When the inventories pile up in retail stores, then the stores will first try to clear the stores by...

Q: how higher saving in a country leads to a higher growth rate in that country.

A: Click to see the answer

Q: In the healthcare economy, as in many other markets, if the firm has a high capital-to-labor ratio, ...

A: To show the relationship between capital-labor ratio and the responsiveness to a change in price.

Q: Lauren's salary decreases from $40,000 to $30,000. She decides to reduce the number of outfits she p...

A: The income elasticity of demand is the responsiveness of quantity change due to change in income.Mat...