Question 1 You are a chocolate lover and you have been asked by your economics teacher to prepare a market analysis of chocolate in the U.S. From data search, you identified several relevant news and prepared a summary, so you conduct your analysis based on them. News 1 NEW DATA: Consumers Find Joy in Chocolate and Candy During COVID-19 By National Confections Association, 24 August 2020 People across the country look for ways to add a little bit of joy to what has been a very serious and uncertain time. Consumers appreciate and value chocolate and candy during these uncertain times because of their uncanny ability to boost moods and lighten perspectives, according to new data from NCA. (Source: https://candyusa.comewsew-data-consumers-find-joy-in-chocolate-and-candy- during-covid-19/) News Summary Given the current events with COVID-19, health and safety of employees is on the first priority of many chocolate factories in the U.S. Temporary measures are in force. Many of them, like See's Candies, suspend their production for first time since World War II. (a) Consider the information of news 1 only. Use 1 to 2 sentence(s) to summarize the key news information before introducing the factor affecting the market for chocolate in the U.S. Use a demand and supply analysis to explain the effect(s) on the equilibrium price and equilibrium quantity of chocolate in the U.S. No demand-and-supply diagram is needed but you should describe how the curve(s) shift(s) in your written explanation. (5 marks) (b) Consider the news summary only. Use 1 to 2 sentence(s) to summarize the key news information before introducing the factor affecting the market for chocolate in the U.S. Use a demand and supply analysis to explain the effect(s) on the equilibrium price and equilibrium quantity of chocolate in the U.S. No demand-and-supply diagram is needed but you should describe how the curve(s) shift(s) in your written explanation. (5 marks) (c) Considering all effects identified in your answers of part (a) and (b), what are the combined effects on the equilibrium price and equilibrium quantity of chocolate in the U.S.? (2 marks) (d) Considering all effects identified in your answers of part (a) and (b), there are different possibilities of market outcome in the market for chocolate in the U.S. Explain any two of them and illustrate with demand-and-supply diagrams. (8 marks)