Suppose that bad weather destroys the cocoa crop in Ghana.This means that the
A) quantity of chocolate supplied will decrease.
B) demand for chocolate will decrease.
C) price of chocolate will remain unchanged.
D) supply of chocolate will decrease.
E) demand for chocolate will increase.

Question

Quizplus · Accepted Answer

If bad weather destroys the cocoa crop in Ghana, the supply of chocolate will decrease. This is because cocoa is a key ingredient in the production of chocolate. As a result, the supply curve for chocolate will shift to the left, causing a decrease in the quantity supplied of chocolate at every price level. This, in turn, is likely to lead to an increase in the price of chocolate.

Suppose That Bad Weather Destroys the Cocoa Crop in Ghana