Chocolate prices are determined by the inter-action of supply and demand. Any significant decrease in input costs (costs of production) for this type of product will, all other things remaining the same:
(a) Shift the supply curve to the right.
(b) Decrease the equilibrium price.
(c) Shift the demand curve for chocolate to the left.
(d) Cause both (a) and (b) above.
Answer: (d) Cause both (a) and (b) above.
Economics
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