If the Market for Chocolate Was at the Equilibrium Point

question 233

Multiple Choice

If the market for chocolate was at the equilibrium point and suddenly half of the chocolate in the world disappeared, what would be the immediate effect?

• A) The price would increase due to a shortage.
• B) The price would decrease due to market equilibrium.
• C) The price would increase due to a surplus.
• D) The price would decrease due to a surplus.
• E) There would be no change in either price or demand.

---

Definitions:

Inter Vivos Gift

A gift given by one living person to another, which becomes the property of the recipient immediately and unconditionally.

Trust Creation

The process of setting up a trust, wherein a trustee holds property or assets for the benefit of a third party, known as the beneficiary.

Consideration

The payment or promise of something of value given by one party to another in exchange for an act or promise that forms the basis of a contract.

Spendthrift Trust

A trust designed to prevent beneficiaries from squandering their inheritance by controlling the distribution of assets.