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Outline
Developments made by the author in the in the article.
Significance of the shift of demand curve to the right.
The effect of shift in the supply curve to the left on the equilibrium price and quantity.
How the market for palm oil is affected by labor shortages and increase in purchases by
Chinese and Indian consumers.
STUDENT NAME, CLASS SECTION
1
Palm Oil Market
The global market had declined since 2019, when Corona Virus invaded the world. The palm oil
market has crushed significantly as the labor market, which depends on immigrants, has
deteriorated. The author reflects on various developments in the global market affecting palm oil.
Significantly, the prices for this product have increased in recent years due to increased demand
paused by less supply in the market (Craymer, 2021). Additionally, demand for consumers from
India and China has increased despite the low production of palm oil in Malaysia. Further, the
author reflects on forced labor in Malaysia, which resulted in bans on significant shipments from
this country, resulting in a decrease in palm oil supply.
A shift in the demand curve to the right indicates an increase in quantity demanded in the market
while supply remains constant. Significantly, this shift is affected by all other factors affecting
demand other than commodity price. The case study indicates that the demand for palm oil
increased as people from China started cooking more during the pandemic period, thus
increasing the demand for this commodity (Craymer, 2021). More so, people might have
changed their tastes and preferences and started consuming commodities containing palm oil
compared to previous years. A shift to the demand c...