Demand and supply in action - Easter Eggs
Monday, March 21, 2011
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With five weeks to go until Easter weekend you may be turning your attention towards Easter eggs in the shops. You may also have noticed that the price of Easter eggs has shot up this year. Easter eggs are costing up to 140% more than last year.
A 324g Galaxy Minstrels Egg is up from £2.50 to £6 – a 140 per cent increase. A Cadbury’s Twirl and Dairy Milk eggs have risen from £3.35 to £5.50, a 64 per cent rise.
There are several reasons for these price rises. Firstly the political unrest in the Ivory Coast. The Ivory Coast is the worlds biggest supplier of cocoa. This unrest will affect the supply of cocoa and therefore shift the supply curve to the left causing the price of cocoa to rise. Another reason for the rise in price is the increase in VAT.
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