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Causes of a Shift to the Right in the Supply Curve of Chocolate

Question

Analyse the causes of a shift to the right in the supply curve of chocolate.

Category:

Market Structures and Competition

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Preview Answer

I. 🍃Introduction
- Definition of supply curve
- Importance of understanding shifts in supply curve

II. Factors that can shift the supply curve to the right
- Lower costs of production
- Subsidies
- Advances in technology
- Good harvest of raw materials
- Lower taxes
- Fall in price/rise in cost of production/fall in profitability of another product

III. Effects of a rightward shift in the supply curve
- Increase in quantity supplied at each price level
- Lower equilibrium price
- Increase in consumer surplus
- Increase in producer surplus

IV. Examples of rightward shifts in the supply curve in the chocolate industry
- Lower costs of production due to higher productivity
- Subsidies provided by government
- Advances in technology in cocoa farming
- Good harvest of cocoa beans
- Lower taxes on chocolate production

V. 👉Conclusion
- Importance of understanding shifts in supply curve for businesses and consumers
- Implications of rightward shift in the supply curve for the chocolate industry

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