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Exploratory essay on how to manufacture sugar
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ntroduction
Sugar, a sweet substance produced mainly from sugar cane and sugar beet. It is one of the world's favourite and most used natural sweetener. Sugar is used in many different ways such as giving more flavour to our tea, coffee or simply in the process of baking. The sugar industries produce several types of sugar a few of which are white, brown and raw sugar. According to the case study, the sugar price is increasing due to some factors. Brazil, the first worldwide producer, India the second producer and the largest consumer of sugar are behind this increase. However the rising price of sugar does not happen naturally. It is a consequence of several factors which in this case are the demand and supply of sugar. This report consists of the identification of the factors that are important in determining the demand and supply of sugar and analysing the reasons of the increase of the sugar price in 2009 and the elasticity of sugar.
Demand
Demand is generally referred to how much ( the quantity) of a product is desired by the buyers and how much they are able to purchase and quantity demanded is the demand at a particular price that people are willing to buy. There is a bidirectional relationship between them, meaning that when the quantity demanded increase, demand also increase and vice versa. The graph below explain this relationship.
Graph 1: Demand
This graph is called the demand curve. As you can see, when the price of the good is at £0. 20, there is more demand of the buyers (above 400) and this is due because of the low price of the good. However comparing it when the price is £0.50, there is less demand from the buyers (100). From this demand curve, it can be concluded that the lower the price, the more the demand...
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...ice of quantity. Equilibrium is mostly defined as when the supply and demand curves intersect at a point. It is when the quantity demanded and quantity supplied are equal. It might have a small effect on it but not a major because using the demand and supply law, producers mostly supply a good according to the price and demand. The graph below explains it.
Graph 4: equilibrium
On this graph you can see that when the price is $2.00 which is called the equilibrium price, and the quantity supply is 7 which is called the equilibrium quantity, both curve intersect at a single point meaning that they are equal and this is the equilibrium.
In conclusion, this report was to evaluate some of the factors in determining the supply and demand of sugar, some of the reasons why the sugar price increased in 2009 and the elasticity of the supply and demand of sugar.
1952
Sugar was first grown in New Guinea around 9000 years ago, which New guinea traders trade cane stalks to different parts of the world. In the New world christopher columbus introduced cane sugar to caribbean islands. At first sugar was unknown in Europe but was changed when sugar trade first began. Sugar trade was driven by the factors of production land which provided all natural resources labor what provided human resources for work and capital which includes all the factories and the money that’s used to buy land. Consumer demand was why sugar trade continued to increase.
Kit-kats, Hershey bars, Skittles, and Jolly Ranchers. The reason these sweets, and many other products, are so popular is because of their sugar content. It’s hard to imagine that something used in nearly every food today was practically nonexistent at one point. But this is true- sugar wasn’t introduced globally until the 1500’s. Following this introduction, the trade that sprung up would come to be one of the most successful and profitable in the world. The Sugar Trade’s success was driven by many factors. Out of those several factors, the ones that promised success were high consumer demand, willing investors with a lot of capital, and the usage of slave labor.
Discuss the Relationship between sugar and slavery in the Early Modern Period. "No commodity on the face of the Earth has been wrested from the soil or the seas, from the skies or the bowels of the earth with such misery and human blood as sugar" ... (Anon) Sugar in its many forms is as old as the Earth itself. It is a sweet tasting thing for which humans have a natural desire. However there is more to sugar than its sweet taste, rather cane sugar has been shown historically to have generated a complex process of cultural change altering the lives of all those it has touched, both the people who grew the commodity and those for whom it was grown.
The rapid growth of sugar as a food has a long and intertwining history that originated in New Guinea. Following the production, consumption, and power that corresponds with sugar, one is able to see numerous causes and effects of the changes underway in the world between 1450 and 1750. The production of sugar in the Americas eventually led to not only the creation of the Atlantic Slave Trade, but also enhanced commerce. Consumption of sugar through rapid trade helped to develop modern capitalism. The power that sugar generated dramatically changed the economic, social, and political fate of the nation as a whole.
Despite the federal aid granted to sugar growers, not all sectors of agriculture devoted to growing sugar derivatives flourished. Domestic production of sugar cane increased steadily from 1982 onward, while sugar beet production stagnated (Knutson, 1985). Through time, the largest number of sugar beet farmers were concentrated in a specific West/Midwest region of the U.S. (Minnesota, North Dakota, Idaho) while sugar cane farmers were found in the Southeast, specifically Louisiana and Florida.
	Sweetness and Power is a strong study relating the evolution of sugar to societal growth as well as to economic change. Despite the flaws contained within the structure of the book and the lack of fieldwork, the book is an excellent collection of data regarding sugar, a topic that most people do not think of as being a major factor in the lives they live today. Mintz forces the "educated layperson" to look around the world today, and really think about what it would be like without the luxury of sugar.
Sugarcane is an important industrial crop for the tropical and subtropical region of the world. It is produced in more than 100 countries, with global production of 174 million tonnes sugar. It accounts for about 80 percent and sugarbeet for about 20 percent of total sugar produced (FAOSTAT, 2008). In 2010, 1,682 million metric tonnes (MT) of sugarcane were produced worldwide in a total area of 23.8 million hectares (ha). Brazil is the largest sugarcane producer, contributing with 40% of the world production (719 MT) followed by India (278 MT), China (111 MT), Thailand (68 MT), Pakistan (50 MT), Colombia (38.5 MT), Australia (31 MT), Argentina (30 MT), United States (27.5 MT), Indonesia (26.5 MT) and the Philippines (23 MT) (FAOSTAT, 2011). India rank second among the sugarcane growing countries of the world in both area and production. Globally it is cultivated over an area of 20.1 million hectare, with annual production of 1381.1 million tonnes and productivity of 65.5 tonnes per ha. In India sugarcane is cultivated over an area of 4.36 million ha, with an annual production of 281.8 million tonnes and productivity 64.6 tonnes per ha. Uttar Pradesh, Maharashtra, Karnataka, Tamilnadu and Andhra Pradesh are the important sugarcane
In economics, particularly microeconomics, demand and supply are defined as, “an economic model of price determination in a market” (Ronald 2010). The price of petrol in Australia is rising, but the demand remains the same, due to the fact that fuel is a necessity. As price rises to higher levels, demand would continue to increase, even if the supply may fall. Singapore is identified as a primary supplier ...
The demand curve follows a distinct line unless some other factor causes the line to shift. The demand curve operates under the principle if the demand goes up the price goes down, and likewise if the demand goes down the price goes up as long as all other things are constant. A shift in the demand curve indicates something is not constant. In the simulation, a company named Lintech expanded its operations to Atlantis. The expansion increased the population of Atlantis changes the demand for apartments, but does not change the supply of apartments in the area. The sudden shortage of apartments created a demand curve shift. The shift permits Goodlife to offer a higher price for their 2 bedroom apartments, and still be able to fill the same number of units. By increasing the price, Goodlife brought the price and quantity available back into equilibrium (University of Phoenix, 2014).
As shown above, crisis increases demand for the product leading to a shortage. Supply does not change. Equilibrium price now shifts to the right and increases. The market is now ready and willing to pay for the product or service at a higher price. Upon seeing long of people waiting for the product, sellers either hike the price or bring in more supplies if it were possible. If more suppliers are brought, equilibrium price goes back to normal. If supply cannot be increased, sellers increase the price of the product or service.
A change in quantity supplied is just a movement from one point to another in the supply curve. In opposite, the cause of a change in supply is a change in one the determinants of supply that shifts the curve either to the left or the right. These determinants are the resource prices, technology, taxes and subsidies, producer expectations, and number of sellers. An equilibrium price is required to produce an equilibrium quantity and a price below that amount is referred as quantity supplied of zero no firms that are entering that particular business. If the coefficient of price is greater than zero, as the price of the output goes up, firms wants to produce more of that output. As the price of the output goes up it becomes more appealing for the firms to shift resources into the production of that output. Therefore, the slope of a supply curve is the change in price divided by the change in quantity. The constant in this equation is something less (negative number always) than zero because it requires strictly a positive...
In conclusion, generally speaking the Law of Supply states that when the selling price of an item rises there are more people willing to produce the item. Since a higher price means more profit for the producer and as the price rises more people will be willing to produce the item when they see that there is more money to be earned. Meanwhile the Law of Demand states that when the price of an item goes down, the demand for it will go up. When the price drops people who could not afford the item can now buy it, and people who are not willing to buy it before will now buy it at the lower price as well. Also, if the price of an item drops enough people will buy more of the product and even find alternative uses for the product.
That is, it is sensitive to price change, and also to the quantity demanded. This means that if many people are consuming a good, the demand is greater than if less people are consuming the good. To further clarify, take the example of attending college. In an environment where most of an individual's peers are going to attend college, the individual will see college as the right thing to do, and also attend college to be like his peers. However, in an environment where most of an individual's peers are not going to attend college, the individual will have a decreased demand for college, and is unlikely to attend.
Price elasticity of demand illiterates the change in quantity demanded as price changes. Elasticity is the responsiveness of how a simple change in one variable can escalate another change in particular the change in demand and supply. The formula for calculating the price elastic demand is Price Elasticity of Demand = % ∆ In Quantity Demand / % ∆ In Price. Relating to Price elasticity demand an example I can give is assuming that the prices of electricity went up by 50% and purchases of electric went down by 25% by using the formula above we can calculate that the price elasticity of electric is Price Elasticity = (-25%) / (50%) = - 0.50. Therefore for every percentage electric increases the quantity purchases decreases by half a percentage. Price elasticity is usually negative which is stated in the example as electric prices goes up the quaintly of electric demanded will drop. In addition it means that it cooperates with the law of demand as price increases quantity demand decreases. The understanding of price elasticity is very important to know how the relationship between the price and demand of the product and how it can determine the products demand. If the quantity demanded changes a lot while the price changes a little bit that products is elastic this can mainly be products which have alternatives and products which can change consumers mind if price changes by even 1p. For example if the price of paracetamol A increases the quantity demanded will fall when consumers swap to the cheaper paracetamol B. No change in price and no change in demand this product is inelastic. For example as the price of petroleum i...
What does supply and demand mean? Demand indicates the quantity of a product or service that is aspired by