Supply & Demand · Confectionery

The Chocolate Market

Equilibrium: where buyers and sellers agree on price and quantity

Equilibrium Price

£1.50

per bar

Equilibrium Quantity

50m

bars per month

Demand (D)

Supply (S)

Shifted Demand (D₂)

Shifted Supply (S₂)

Demand Scenarios

Supply Scenarios

Demand curve slopes DOWN ↘The higher the price, the fewer bars consumers want to buy. Lower prices attract more buyers.

Supply curve slopes UP ↗Higher prices give producers more incentive to make and sell more. Lower prices reduce their willingness to supply.

Equilibrium ✕Where supply and demand cross. This is the market-clearing price — no surplus, no shortage.

Shifts vs MovementsA price change = movement along the curve. A non-price change (income, costs, trends) = a shift of the whole curve.

Test Yourself

Six questions on supply, demand, and the confectionery market. Try to predict what happens to price and quantity before you check the answer.

Question 1

Cocoa harvests in Ghana are destroyed by drought. What happens to the price of chocolate?

🌦️ Supply shock scenario

Question 2

Cadbury opens a new factory, increasing output by 30%. What happens to equilibrium quantity and price?

🏭 Economies of scale / supply increase

Question 3

A viral TikTok trend makes luxury dark chocolate hugely popular. The supply stays the same. What happens?

📱 Demand shift scenario

Question 4

The government introduces a sugar tax that raises production costs. What is this called and what happens to supply?

🚢 Government intervention

Question 5

What is the key difference between a movement along the demand curve and a shift of the demand curve?

📐 Exam technique — command word: Explain

Question 6

Christmas arrives. Demand for confectionery surges. At the same time, a cocoa shortage reduces supply. What is the likely effect on price?

🎄 Both curves shift — exam-style analysis