(a)[8]
A study reports that dark chocolate has a price elasticity of demand of (–)0.8 and that white chocolate has a price elasticity of demand of (–)1.4. Explain how chocolate producers could adjust price to raise total revenue for each type of chocolate.
(b)[12]
Explain the factors that might cause a fall in demand for chocolate and discuss the extent to which chocolate producers have the power to stop this fall in demand happening.