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

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 21P

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