In the late fifteenth century, Europe consumed about 2 million pounds of pepper per year. At this time, Venice (ruled by a small, tightly knit group of merchants) was the major player in the pepper trade.
But after Portuguese explorer Vasco da Gama blazed a path around Africa into the Indian Ocean in 1498, Venice found itself competing with Portugal's trade route. By the mid-sixteenth century, Europeans consumed 6 to 7 million pounds per year, much of it through Lisbon. After da Gama's success, the price of pepper fell.
a. During the fifteenth century, was it likely that a cartel was restricting pepper imports? Why or why not?
b. If the price of pepper before 1498 had been lower, would da Gama have been more willing or less willing to sail around South Africa's Cape of Good Hope? Why?
c. What happened in 1498 that turned a successful cartel into a less successful cartel?
d. The ruling merchants of Venice had no political power in other parts of Europe. Why is that important in understanding how European pepper consumption more than tripled in just over half a century?