A majority of the worlds chocolate is made from cocoa beans grown in the African countries of

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A majority of the world’s chocolate is made from cocoa beans grown in the African countries of Ghana and Ivory Coast. It can take two to four years for new trees to produce the pods in which the beans are grown. An article on bloomberg.com in early 2019 noted that world demand for chocolate was increasing, leading to higher prices. Following a permanent increase in the demand for chocolate, all else equal, would you expect the price of chocolate to be greater after one year or after four years? Use a graph to illustrate your answer.

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Macroeconomics

ISBN: 9780135801741

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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