Economics 9708 · AS & A Level · Market equilibrium and disequilibrium

Market equilibrium and disequilibrium — practice question

(a)[8]

In 2022 the supply of root ginger from Nigeria, Africa’s largest producer, declined by 20%. Market demand was predicted to rise by more than 5%. With the aid of a demand and supply diagram, explain how the market equilibrium for root ginger in Nigeria is expected to change and judge how certain you are about the new market price.

(b)[12]

Assess the extent to which producers of root ginger may be able to stabilise their incomes.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Correct equilibrium definition

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