(a)[2]
Describe how the level and source countries of the US’s avocado imports changed from 2013 to 2018.
(b)[5]
- Calculate the percentage change in the wholesale price of Mexican avocados between April 2019 and the end of July 2019. [1]
- Explain one possible demand reason and one possible supply reason for this price change. [4]
(c)[4]
Using the information given, consider whether the supply of avocados is price elastic or price inelastic in the short run and in the long run.
(d)[3]
Explain, with the aid of a production possibility curve diagram, the opportunity cost to a New Zealand farmer of switching from dairy to avocado production.
(e)[6]
Discuss whether the price mechanism in the avocado market is working to allocate resources successfully.