It has been reported that the world demand for chocolate is increasing at a time when the supply of cocoa beans, the raw ingredient required to produce chocolate, is not as large as expected.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

1. [8] accurate diagram showing demand and supply curves for chocolate (1 mark)
2. with equilibrium price and quantity (1 mark)
3. a separate diagram (or a development of the simple supply and demand diagram) showing that there will be a shift to the left of the supply curve for chocolate (1 mark); as a result of the fall in the supply of cocoa beans and a rise in price (1 mark)
4. a separate diagram (or a development of the simple supply and demand diagram) showing that there will be a shift to the right of the demand curve for chocolate (1 mark); as a result of the increased demand for chocolate and a rise in price (1 mark)
5. elaboration that considers the overall impact on the market price and quantity of the two changes together (up to 2 marks)
6. [12] explains one policy to reduce these problems with due reference to the strengths and weaknesses of this policy (up to 4 marks)
7. explains (at least) one further policy to reduce these problems with due reference to the strengths and weaknesses of the(se) policy(ies) (up to 4 marks)
8. evaluation that compares the policies to arrive at a conclusion on which is 'most effective' (up to 3 marks); and a conclusion of which is 'most effective' (1 mark)