20 Sep identify the advantages and disadvantages for both solutions.
Write a short essay to answer both questions within 600 words limit.
Marks: 100 marks (to be scaled down to 10% of unit assessment).
Questions:
(i) how this industry may have ended up
in this situation. Please not Explain, with the aid of the above diagrams,e the left diagram represents the market and the right
one illustrates the situation for an individual grape grower.
(ii) There are two solutions to this problem. Either the government can implement a
subsidy which keeps the grape growers in business (bail-out solution), or the least
efficient growers will have to shut down, sell up, pack up and leave the market
(the market solution). Compare the natural market solution with the bail-out
solution and identify the advantages and disadvantages for both solutions.
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