Washington State is the US state that produces the highest number of apples. In 2019, apple output rose in Washington State, yet the market was still in disequilibrium. Apple farming is labour-intensive because apples are harvested by hand. The US apple market is competitive.
(a)[2]
Define market disequilibrium in terms of demand and supply.
(b)[4]
Explain opportunity cost and how it may affect a farmer’s choice to grow apples.
(c)[6]
Analyse how labour-intensive production might help an economy.
(d)[8]
Discuss whether consumers gain, or do not gain, from a competitive market.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A market in which demand and supply are not equal / balanced / matched” …