The Cocoa Exporters Alliance (CEA) is expected to restrict its annual exports of cocoa beans by 150,000 tonnes following its summit in Abidjan. This restriction is intended to support and increase the global price of cocoa.
All other things being equal, if the export of cocoa beans was restricted in such a way, which one of the following would occur in the world market for cocoa beans?
shift to the right of the demand curve.
movement along the demand curve.
shift to the right of the supply curve.
movement along the supply curve.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.