Factors Affecting Demand and Supply of Chocolate Chocolate is food that can be consumed raw or processed. It can be sold as powder to be used as an ingredient for making hot drinks, or produced as a solid bar for direct consumption. Every product in the market is governed by the laws of demand and supply that control the quantity produced, the quantity bought and at what price (EconPort, 2006). This way, the markets have managed to compete fairly and even the producers have known what to produce and how much to sell it. The forces of demand and supply are governed by the determinants of demand and supply respectively. The law of demand states that when the quantity of a product demanded by the consumers increases with decrease in price (BlackAcademy.net, n.d). This also means that when the price of a commodity increases, its demand in the consumer market decreases.