If the market for chocolate was at the equilibrium point and suddenly half of the chocolate in the world disappeared, what would be the immediate effect?
A) The price would increase due to a shortage.
B) The price would decrease due to market equilibrium.
C) The price would increase due to a surplus.
D) The price would decrease due to a surplus.
E) There would be no change in either price or demand.

Question

Quizplus · Accepted Answer

With half of the chocolate in the world disappearing, there would be a significant decrease in supply. This would cause a shortage of chocolate in the market, which would lead to an increase in price. Therefore, the immediate effect would be an increase in price due to a shortage.

If the Market for Chocolate Was at the Equilibrium Point