Manufacturers had met in Panama to discuss ways of averting a projected shortfall in cocoa production in the wake of a poor season.

Manufacturers had met in Panama to discuss ways of averting a projected shortfall in cocoa production in the wake of a poor season. The vulnerability to pests and plant diseases of the cocoa tree, which can only grow in tropical regions within 20 degrees of the equator, and the failure of cocoa production to keep up with growth in consumption, added to concerns. Predictions of a serious shortage within 10 years were widely reported.

The Confectionary Manufacturers of Australasia told CHOICE that efforts were being made to develop disease-resistant plants, and the plants are being grown in different regions in the hope of increasing production. In Australia, for example, the Federal government and the departments of agriculture in Queensland, the NT and WA have teamed up with 'a leading chocolate manufacturer' to fund trial plantations in Broome, Darwin and Innesfail.

From the above article, illustrate the following using demand and supply graphs for each of the below.

a.        The effect on the supply of cocoa if the diseases affecting the cocoa tree become worse.

b.        The effect on the demand curve of cocoa if worldwide chocolate consumption continues to rise.

c.        The effect on the world equilibrium price and quantity of cocoa if Australia can successfully cultivate cocoa trees.

d.        The effect on the equilibrium price of chocolate if all first-year students rush out and purchase chocolate for their economics lecturers.