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Economics for your Classroom from
Ed Dolan’s Econ Blog
Chocolate Lovers Keep
a Nervous Eye on Volatile
Cocoa Prices
Dec. 2...
The Long Rise in Cocoa Prices
 The world price of cocoa, the
chief ingredient in chocolate, has
been on a long upward tre...
Strong Income Elasticity
 One factor driving chocolate prices
higher has been strong income
elasticity of demand
 In the...
Question: How Does Positive Income Elasticity Affect Price?
If chocolate is a normal good, how will an
increase in consume...
Answer: How Positive Income Elasticity Affects Price
 If chocolate is a normal good, an increase
in consumer income will ...
Diseases of Plants and Humans
 Cocoa supply, like any farm product,
depends on growing conditions
 For example, in 2010,...
Question: How Do Natural Disasters Affect Price?
Suppose a natural disaster like plant or
human disease disrupts the cocoa...
Answer: How Natural Disasters Affect Price
 A natural disaster like a plant or human
epidemic will cause the supply curve...
Inelastic Demand and Short-Run Price Volatility
 Another factor contributing to the
volatility of chocolate prices is ver...
The Bottom Line
 The bottom line? You may soon
have to pay more for your
chocolate—or you may not
 The complexities of s...
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The Bottom Line  The Chocolate Lovers Keep a Nervous Eye on Volatile Cocoa Prices

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The Bottom Line
 The bottom line? You may soon
have to pay more for your
chocolate—or you may not
 The complexities of supply and
demand are likely to keep
chocolate prices volatile
 But look at the bright side—if the
thought of high chocolate prices
depresses you, just remember
that chocolate itself is a reliable
cure for depression!
Dec. 27, 2014 Ed Dolan’s Econ Blog

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  • cmoradellcasellas

    Dec. 29, 2014
  • JerryGatapia

    Dec. 28, 2014

The Bottom Line  The bottom line? You may soon have to pay more for your chocolate—or you may not  The complexities of supply and demand are likely to keep chocolate prices volatile  But look at the bright side—if the thought of high chocolate prices depresses you, just remember that chocolate itself is a reliable cure for depression! Dec. 27, 2014 Ed Dolan’s Econ Blog

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