Serbia ranks as the world’s second largest producer of raspberries, and raspberries have elastic demand. The economic problem is encountered by consumers when they purchase raspberries. Only a small number of raspberry farm workers belong to trade unions. By 2020, trade union membership in Serbia had dropped to 20% of all workers. In that same year, Serbia had a larger number of state pensioners than workers.
(a)[2]
Identify two determinants of price elasticity of demand.
(b)[4]
Explain how the economic problem results in consumers having to make choices.
(c)[6]
Analyse why some workers decide not to join a trade union.
(d)[8]
Discuss whether or not a government should reduce the amount of money it gives to each state pensioner.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Availability of substitutes” …