Despite lower inflation figures posted by the Australian Bureau of Statistics in July, the price of some goods and services continue to increase. To answer the following questions, you will need to refer to the ABC News article by Morris (2023) which reports on the increase in chocolate prices, as well as undertake your own additional research. 1. Assuming that the domestic market for chocolate is perfectly competitive, use a generic market demand and supply diagram to: (a) Illustrate the domestic market for Chocolate in equilibrium, clearly label your diagram. (b) Explain, with the aid of a new diagram, the impact of the supply shock on the market for chocolate from part (a), assuming that consumer demand for chocolate was not affected. (c) Explain 3 reasons for the supply-side shock that were outlined in Morris (2023). Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely.
Despite lower inflation figures posted by the Australian Bureau of Statistics in July, the
1. Assuming that the domestic market for chocolate is
(a) Illustrate the domestic market for Chocolate in equilibrium, clearly label your diagram.
(b) Explain, with the aid of a new diagram, the impact of the supply shock on the market for chocolate from part (a), assuming that consumer demand for chocolate was not affected.
(c) Explain 3 reasons for the supply-side shock that were outlined in Morris (2023).
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
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