Suppose We Are Analysing the Market for Hot Chocolate

question 26

Essay

Suppose we are analysing the market for hot chocolate. Graphically illustrate the impact each of the following would have on demand or supply. Also, show how equilibrium price and equilibrium quantity would change.
a) Winter starts, and the weather turns sharply colder.
b) The price of tea, a substitute for hot chocolate, falls.
c) The price of cocoa beans decreases.
d) The price of whipped cream falls.
e) A better method of harvesting cocoa beans is introduced.
f) The Department of Health announces that hot chocolate cures bad skin.
g) Protesting farmers dump millions of litres of milk, causing the price of milk to rise.
h) Consumer income falls because of a recession, and hot chocolate is considered a normal good.
i) Producers expect the price of hot chocolate to increase next month.
j) Currently, the price of hot chocolate is R5 per cup above equilibrium.

Identify the functions of bones within the skeletal system.

Understand the cellular composition of bone and the role of specific cells in bone physiology.

Know the distribution of red and yellow bone marrow in the adult skeleton and its significance.

Understand the basic terminology and definitions related to bone structures and markings.

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Definitions:

Incremental Cash Flow

Those cash flows that arise solely from the asset that is being evaluated.

Present Value

The current valuation of upcoming cash flows or a lump sum of money, discounted at an established rate of return.

Sunk Cost

An expense that has already been incurred and cannot be recovered, which should theoretically not influence any future financial decisions or strategies.

Expensed

The act of charging costs to expense accounts, recognizing them in the income statement in the period they were incurred.