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In the cocoa market, buyers aim to purchase units at the lowest possible price, while sellers strive to sell their cocoa at the highest possible price. Buyers have a maximum price they are willing to pay, influencing their negotiation tactics. Conversely, sellers consider their production costs and seek to maximize profits. Understanding the dynamics of supply and demand is crucial to achieving market equilibrium. This guide explores effective negotiation strategies for both buyers and sellers in the cocoa market.
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Sample Cards SAMPLE BUYER CARD You want to buy a unit of cocoa. You are willing and able to pay ______ for this unit, but you want to pay the lowest price you can. The lower the price you negotiate, the greater your gain. SAMPLE SELLER CARD You want to sell a unit of cocoa. This unit cost you ______ to produce, but you want to sell it for the highest price you can. The higher the price you negotiate, the greater your gain.
Market Equilibrium Demand Supply Price per unit Number of units of cocoa