Direction for Journal II –Analyze 2 articles from the Wall St. Journal using supply and demand...

Question

Direction for Journal II –Analyze 2 articles from the Wall St. Journal using supply and demand analysis. Please follow the format of “Example of Journal” given. Again, it is crucial that you follow guidelines for Journal II – All submissions to be typed – Demand and supply curves can be typed.Supply & Demand AnalysisCriteria for grading

1. Analysis must be typed. The show graphs.
2 Pick at least 2 interrelated articles. Three articles are much better. Please attach articles to the journal.
3. Look at a former student’s analysis “Example of Journal”. See how cleverly this student has used the available information to infer about other markets. Analyze at least 3 interrelated markets. So here he talks about market for firearms, for bumps, for related/sponsoring companies’ products. You will find plenty of articles that analyze more than one market –that is what you’re looking for.
https://www.wsj.com/ (Wall St. Journal)

Soma · Accepted Answer

Supply and Demand Analysis of Interrelated Markets
The study has analyzed demand supply impact of four interrelated markets: 
Cocoa Market: 
Cocoa is the key ingredient for Chocolate. But the cocoa supply has been heavily disrupted in West Africa during the recent times. Ghana and Ivory Coast are two West African countries that produce roughly 60 percent of World Cocoa Production. But major cocoa producing regions now fail to keep the production level due to climate change. Cocoa market has observed a sharp rise in cocoa price because of higher demand and short in supply. In U.S the price has been surged by 31%. There is a significant drop in cocoa supply in both Ghana and Ivory coast. Climate change and seasonal winds have dried out the oil in Ivory coast resulting the production of cocoa with poor quality. It has raised a sincere concern about the sustainability of the cocoa industry. The poor-quality cocoa beans are likely to be rejected at the ports. As far as the demand is concerned, the demand for cocoa is rising at a higher pace in Europe and other regions. Cocoa is now not only used for chocolate production but also used in manufacturing several confectionary items.  (Hodari, 2018)
We can show the impact of reasonably good demand and supply shortage graphically:
Cocoa Market 
SS’
B
Price of cocoa
Q
A
P’
P
Quantity of cocoa 
SS
DD’
DD
	DD and SS  represents the demand for cocoa  and SS represents the supply of Cocoa Due to greater demand for cocoa in the world market, the demand curve shifts rightward from DD to DD’. On the other hand, the supply disruption in cocoa producing regions would shift he supply curve leftwards from SS to SS’. The cocoa market has moved from initial equilibrium A to new equilibrium B. At the new equilibrium point B, the price has been increased from P to P’. Actually, a rightward shift of the demand curve combined with a leftward shift of the supply curve would result an increase in the equilibrium price but the level of equilibrium quantity remains indeterminate.  Whether the equilibrium quantity will increase, decrease or remain same that completely depends upon the relative magnitude of the shift of the demand for cocoa and the supply of cocoa curve. 
Chocolate market:
The higher price of Cocoa has a profound impact on chocolate market because cocoa is the major ingredient for chocolate production. The higher price of cocoa has raised the cost of production for chocolate producers and slashing their profit margin.

Direction for Journal II –Analyze 2 articles from the Wall St. Journal using supply and demand analysis. Please follow the format of “Example of Journal” given. Again, it is crucial that you follow...

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