Medan ranks as the third largest city in Indonesia by population. It is sometimes called the city of a million shop-houses because many people launch small firms on the ground floor of their homes. As a result, the market supply in industries such as cafes and clothes shops has increased. Also, because demand for food delivery has grown, the unemployment rate has fallen. However, labour mobility is restricted both within Medan and across Indonesia.
(a)[2]
Identify the distinction between individual supply and market supply.
(b)[4]
Explain two factors that influence the mobility of labour.
(c)[6]
Analyse the reasons that small firms exist.
(d)[8]
Discuss whether a lower unemployment rate benefits an economy or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Individual supply is the quantity offered by one firm at a given price” …