(a)[2]
Using Fig. 1.1, calculate the percentage change in the world price of olive oil from May 2022 to January 2023.
(b)[2]
Some restaurants and commercial kitchens are using sunflower oil instead of olive oil. Explain how economists might measure the effect of higher olive oil prices on the demand for sunflower oil.
(c)[4]
With reference to Fig. 1.2 and using a demand and supply diagram, consider the possible effect of higher olive oil prices in 2023 on consumer surplus.
(d)[6]
Assess the probable effect of larger stocks of olive oil on the price and quantity of olive oil traded in the future.
(e)[6]
Assess the extent to which a fall in the value of the US dollar against the euro is likely to influence US imports of olive oil from the EU.