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Question: Consider the world supply of cocoa​ beans, the main input in the production of chocolate. For each of the events listed​ below, state and explain the likely effect on the supply of cocoa beans. How would each event be illustrated in a​ diagram? – Free Chegg Question Answer

Consider the world supply of cocoa​ beans, the main input in the production of chocolate. For each of the events listed​ below, state and explain the likely effect on the supply of cocoa beans. How would each event be illustrated in a​ diagram?

a.

UnexpectedUnexpected

growing conditions lead to a

poor yieldpoor yield

of cocoa beans in Ivory​ Coast, the largest supplier of cocoa beans.

The world supply curve of cocoa beans would

​, since this event would

b. There is a dramatic

fallfall

in the world price of coffee beans. Assume that farmers growing cocoa beans can easily grow coffee beans instead.

The world supply curve of cocoa beans would

not shift comma but there would be a movement down and to the left along the curvenot shift, but there would be a movement down and to the left along the curve

shift to the rightshift to the right

not shift comma but there would be a movement up and to the right along the curvenot shift, but there would be a movement up and to the right along the curve

shift to the leftshift to the left

not shift and show no movement along the curvenot shift and show no movement along the curve

​, since this event would

decrease the quantity supplied at every price.decrease the quantity supplied at every price.

increase the quantity supplied at every price.increase the quantity supplied at every price.

not change any variables that affect quantity supplied other than price.not change any variables that affect quantity supplied other than price.

c. Wages for farm labour in​ cocoa-growing regions

riserise.

The world supply curve of cocoa beans would

shift to the leftshift to the left

not shift and show no movement along the curvenot shift and show no movement along the curve

shift to the rightshift to the right

not shift comma but there would be a movement down and to the left along the curvenot shift, but there would be a movement down and to the left along the curve

not shift comma but there would be a movement up and to the right along the curvenot shift, but there would be a movement up and to the right along the curve

​, since this event would

increase the quantity supplied at every price.increase the quantity supplied at every price.

not change any variables that affect quantity supplied other than price.not change any variables that affect quantity supplied other than price.

decrease the quantity supplied at every price.decrease the quantity supplied at every price.

d. Farmers in various parts of the world see

losses being takenlosses being taken

by cocoa farmers and choose to

leaveleave

this industry.

The world supply curve of cocoa beans would

not shift and show no movement along the curvenot shift and show no movement along the curve

not shift comma but there would be a movement up and to the right along the curvenot shift, but there would be a movement up and to the right along the curve

shift to the leftshift to the left

shift to the rightshift to the right

not shift comma but there would be a movement down and to the left along the curvenot shift, but there would be a movement down and to the left along the curve

​, since this event would

not change any variables that affect quantity supplied other than price.not change any variables that affect quantity supplied other than price.

decrease the quantity supplied at every price.decrease the quantity supplied at every price.

increase the quantity supplied at every price.

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