Extract 1: Cocoa Yields and the Chocolate Industry
Throughout 2023, severe weather and crop disease in West Africa severely impacted global cocoa harvests, causing wholesale cocoa bean prices to surge. Because cocoa is the primary raw material for artisan chocolate makers, their marginal production costs rose sharply. Consequently, the retail price of a premium dark chocolate bar rose from £3.20 to £4.50, and the volume of retail sales fell significantly.
Explain, using an appropriate diagram, the impact of the cocoa bean shortage on the market for premium dark chocolate described in Extract 1.
11 exam-style questions on OCR A Level Economics The interaction of markets. Each one has a worked solution and a mark scheme showing where the marks go.