Question

Which outcome is expected regarding the hot cocoa industry when the cost of cocoa from south america increases in price, making it more expensive to u.s. businesses?

Answer 1

Outcome which is expected regarding the hot cocoa industry when the cost of cocoa from south america increases in price, making it more expensive to u.s. businesses is that consumers will decrease the purchase of  hot cocoa.

This happens due to the law of demand.

The law of demand describes that demand for any product changes inversely to its price if  all other things kept equal. In other words, the higher the price will be, the lower the level of demand will be there.

Because the buyers always have finite resources, their spending on a given product or any commodity is also limited , so higher prices will definitely reduce the quantity demanded.

To know more about law of demand here:

brainly.com/question/10782448

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