Question

According to “The Chocolate Curse,” what factors have contributed to the recent increase in cocoa prices? Your answer should include a discussion of supply and demand.

Answer 1

Chocolate is a luxurious item for many of the people in the world.west African countries like ghana, cote de ivory etc are producing countries of cocoa.

Recent time suppy side shock has led to increase cost pull inflation in price of chocolate made by raw materials of coco .

The trees of cocoa became old and countries producing this is looking forward to new plantation now ,thus this create short term suppy loss . The climate change effect also decrease yield of cocoa Produciton and suppy shock as well.

Demand side inflation ,which is created by new social and environmental concerns among consumers by opposing child labor and the destruction of forests also increased costs for producers.

Consumer taste or demand also changing towards more luxurious chocolate then cocoas chocolate.

Thus these all are main supply and demand side cause increase the price of this product.