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ENGL 101 Higher College of Technology Scarcity of Raw Sugar Questions

ENGL 101 Higher College of Technology Scarcity of Raw Sugar Questions

Question Description

Answer all the questions given below the case studies. For every question given, it should be answered with minimum fifty hundred (50) words and maximum hundred (100) words per question.


Part 1:

It has been recently witnessed, highest level of raw sugar price due to problems with supply. Demand for sugar in some countries is increased due to the use of raw sugar to produce alternative products. On other side it was observed, severe downtrend in production of sugarcane due to the adverse climatic conditions and lead to price increase. The International Sugar Organisations foretold that global consumption of sugar is likely to outstrip production in years to come. In the developed countries, snack producers demanded to increases the import of raw sugar, so that there won’t be stock out situations. Analysts forecasted that most retailers business will not be effected because portion of sugar in consumers basket is less and thereof rarely increase in price will be noticed.

On other side, a research suggests that consumer’s consumption of sugar-based beverages and food items are decreasing. This shift in consumer taste and habits and health consciousness mindset influenced the manufacturers to come up with sugar less beverages and food items. It has been observed from the research conclusion that sugar less food items are having high demand in urban markets when compared to rural markets. Further, Availability of sugar-based products in the market reveals that even thou consumers are health conscious a large segment of customer adore sweet based products in their daily cuisine.


1. Identify and explain which central economic problems you find in the case. Illustrate

with the help of microeconomics tool how the central economic problem notified in

the case can be solved?

2. Apply concept of law of supply and demand to the scenario in the case, identify and explain the exceptions or assumption of law of demand you seen in sugar context.

3. The demand for sugar is price elastic or inelastic? Give reason in support of your explanation?

4. Justify your choices and explain whether any given change in supply or demand of sugar will have a bigger effect on the equilibrium price of quantity.

5. Illustrate the type/form of competitive market prevailing in the case. How might companies such as Mars and Nestlé react to an increase in the price of sugar?

6. Illustrate the situations you identify for the following cost in the case.

Note: under this question there is small table you need to fill it up, I’ve uploaded inside file named “Question 6 Table”.

7. Consider the situations mentioned in case illustrate the relationship between Production (output) cost and revenue.

8. Identify normative and positive statements in the case and Give the reasons why those statements are normative and positive.

9. As the demand of the consumer changes with the increase in health consciousness among consumers, there will also be change in the equilibrium Price and Quantity. What are the factors that will affect the shift in equilibrium? Illustrate the answer with a table and a graph.

10. Analyse the factors which might influence the profits of sugar manufacturers give reasons to support your answer.

*** Words count = 500 – 1000 words.

*** In-Text Citations and References using Harvard style.

*** I have uploaded compressed file named “Materials” which have all the materials related to this assignment.

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