Question

The New York Times recently stated: “While the world’s appetite for chocolate grows more voracious each year, cacao farms around the globe are failing, under siege from fungal and viral diseases and insects... Researchers predict a shortfall in beans from cacao tree, the raw material from which chocolate is made, in as little as five to ten years” Using the supply-demand framework, show the implied prediction for the equilibrium price and quantity of chocolate.

Answer 1