Final answer:
With a slightly inelastic PES of 0.95, if the market price of chocolate increases by 10%, the supply of chocolate would increase, but by less than 10%, approximately by 9.5%.
Step-by-step explanation:
If the market price of chocolate increases by 10%, and the price elasticity of supply (PES) is 0.95, which is slightly inelastic, the quantity supplied might not increase proportionately to the price increase. In economics, PES measures how much the quantity supplied of a good responds to a change in price. A PES of 0.95 indicates that for a 10% increase in price, the quantity supplied would increase by approximately 9.5%. Therefore, the supply of chocolate would increase, but not by the full 10% that the price increased.
This situation assumes no other factors are affecting supply. If there were other factors, such as the input price changes or technological improvements, these would have to be accounted for as well. However, given only a price increase and the PES, one would expect a rise in supply but by slightly less than the percentage increase in price.