Raw Sugar Industry & Market analysis
1. Using the appropriate diagrams and relevant economic theories analyse the market for raw sugar and explain why sugar price has been increasing. Based on your diagrammatic analysis, what do you anticipate will happen to equilibrium quantity? (Max 500 words )
2. Thinking about the production and consumption of sugar, do you anticipate that supply and demand for sugar are price elastic or inelastic? Critically discuss. For any given change in demand or supply, when do you anticipate to observe greater price fluctuations? Discuss using the appropriate diagrams.
(Max 500 words)