Draw diagrams to illustrate an increase and a decrease in the supply of cocoa beans, explaining the reasons for each shift.

TASK 3b: Draw Two Simple Diagrams (4 marks)

• Diagram 1: Increase in Supply

  • Draw a graph with the vertical axis labeled "Price" and the horizontal axis labeled "Quantity".
  • Draw an upward-sloping curve labeled $S_1$ (Original Supply Curve).
  • Draw a second upward-sloping curve to the right of $S_1$, labeled $S_2$ (New Supply Curve).
  • This shift indicates that at every price, a greater quantity of cocoa beans is supplied.
  • Write: "Supply Increased".
  • Reason: A decrease in the cost of production (e.g., lower fertilizer prices) makes it more profitable to produce cocoa beans, leading farmers to supply more.

• Diagram 2: Decrease in Supply

  • Draw a graph with the vertical axis labeled "Price" and the horizontal axis labeled "Quantity".
  • Draw an upward-sloping curve labeled $S_1$ (Original Supply Curve).
  • Draw a second upward-sloping curve to the left of $S_1$, labeled $S_2$ (New Supply Curve).
  • This shift indicates that at every price, a smaller quantity of cocoa beans is supplied.
  • Write: "Supply Decreased".
  • Reason: An increase in the cost of production (e.g., higher labor wages) makes it less profitable to produce cocoa beans, leading farmers to supply less.