Question

Using the demand and supply model, with regards to the cocoa industry; discuss the statement, "with demand forecast to outstrip supply, a crisis is looming for the industry"

Answer 1

"With demand forecast to outstrip supply, a crisis is looming for the industry" means that if a supplier forecasts higher or lower demand than it actually is, then there may be over- or underproduction, which will be inefficient for the supplier and the market as a whole.