Unit 1: Agriculture, buffer stock and cocoa

Will a collapse in global cocoa production bring an end to chocolate as an affordable treat and giver of blood sugar? This article from the Independent describes the issues faced by the cocoa producers.

Price volatility in commodity markets is an important part of the Unit 1/market failure syyllabus and something we will be covering inb detail after the Eid break.  You guys must understand how price intervention strategies such as maximum prices / buffer stock schemes work in the real world and the problems they can cause.

Below is one of the things I would like you to complete over the holiday. This will be an extremely useful introduction to the issues faced in agricultural markets and the government intervention that can actually make things worse.

Yours task will be to read, research and complete the questions from the worksheet. You will need to refer to your textbook and any other noted you can find on the topic!

Cocoa economics worksheet

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