Changes in Equilibrium Market for Hot Cocoa Scenario 1: Price Supply Studies have shown that consuming cocoa has health benefits. What effect would this have on the market for hot cocoa? (Indicate the effect by drawing on the graph provided) What has happened to the equilibrium price? Quantity? Demand Quantity Scenario 2: Market for Hot Cocoa Cocoa (Cacao) beans and imported from South America. The government has decided to increase the tax on imported goods such as cocoa. What effect would this have on the market for hot cocoa? (Indicate the effect by drawing on the graph provided) Price Supply What has happened to the equilibrium price? Quantity? Demand Quantity

Changes in Equilibrium Market for Hot Cocoa Scenario 1: Price Supply Studies have shown that consuming cocoa has health benefits. What effect would this have on the market for hot cocoa? (Indicate the effect by drawing on the graph provided) What has happened to the equilibrium price? Quantity? Demand Quantity Scenario 2: Market for Hot Cocoa Cocoa (Cacao) beans and imported from South America. The government has decided to increase the tax on imported goods such as cocoa. What effect would this have on the market for hot cocoa? (Indicate the effect by drawing on the graph provided) Price Supply What has happened to the equilibrium price? Quantity? Demand Quantity

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section: Chapter Questions

Problem 20AA

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