nintroductionSugar, a sweet substance produced mainly from sugar cane and sugar beet. It is one of the world's favorite and most used natural sweeteners. Sugar is used in many different ways, for example to give more flavor to our tea, coffee or simply during the cooking process. Sugar industries produce different types of sugar, some of which are white, brown and raw sugar. According to the case study, the price of sugar is increasing due to some factors. Behind this increase are Brazil, the world's leading producer, and India, the second producer and largest consumer of sugar. However, the increase in the price of sugar does not happen naturally. It is a consequence of several factors which in this case are the demand and supply of sugar. This report consists of identifying the important factors in determining the demand and supply of sugar and analyzing the reasons for the increase in the price of sugar in 2009 and the elasticity of sugar. DemandDemand generally refers to how much (quantity) of a product is desired by buyers and how much they are able to purchase, while quantity demanded is the demand at a particular price that people are willing to purchase. There is a two-way relationship between them, meaning that when the quantity demanded increases, the demand also increases and vice versa. The following graph explains this relationship. Graph 1: Demand This graph is called the demand curve. As you can see, when the price of the good is £0.20, there is more demand from buyers (over 400) and this is due to the low price of the good. However, when compared to a price of £0.50, demand from buyers is lower (100). From this demand curve we can conclude that the lower the price, the higher the demand... middle of paper... quantity ice. Equilibrium is mostly defined as when the supply and demand curves intersect at one point. It is when the quantity demanded and quantity supplied are equal. It may have a small but not major effect because, using the law of supply and demand, producers primarily offer a good based on price and demand. The following graph explains this.Graph 4: EquilibriumIn this graph you can see that when the price is $2.00, called the equilibrium price, and the quantity supplied is 7, called the equilibrium quantity, both curves intersect at a single point, which means they are equal and that is equilibrium. In conclusion, this report was to evaluate some of the factors that determine the demand and supply of sugar, some of the reasons why the price of sugar increased in 2009, and the elasticity of demand and supply of sugar.1952