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Read the Extract below and answer the questions that follow.

Is Covid-19 fuelling a growing demand for SA's lemons?
There are unverified claims that eating lemons can help prevent infection with the new coronavirus. SA has seen a marked increase in demand for lemons from overseas markets, amid unverified claims that eating lemons and other foods commonly used as home remedies for flu and common colds can help prevent infection with the new coronavirus. More than 4.5-million cartons of lemons have been shipped to date, double the 2019 volumes...
Source: Business Live
Answer ALL the questions in this section.
Question 1.1
Using the demand and supply model, explain what would happen in the market for lemons in South Africa, ceteris paribus. (10)
Question 1.2
1.2 Continuing from 1.1 above, suppose that as a result of cold weather, lemons are affect by frost and the harvest is poor. Explain using a properly labelled diagram, the effect of this in the market for lemons, ceteris paribus. (10)
QUESTION 2
[10 Marks]
Read the Extract below and answer the questions that follow.
The production possibilities in the table below indicate the potential production of a hypothetical farmer if all his resources are used efficiently. The farmer produces apples and pears. When he uses all his resources to produce apples, he cannot produce pears. When he uses all his resources to produce pears, he cannot produce apples. He does not have enough resources to produce the maximum number of apples and pears. Therefore, the farmer must choose a combination of apples and the maximum number of pears to produce. The most efficient combination with the given resources will be indicated by a production possibility curve (PPC). A PPC is a diagram that shows what combination of two different goods could be produced efficiently given the available limited supply of the factors of production.
The maximum combinations of apples and pears that the farmer can produce in a year:

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Step-by-step explanation:

ANS- There are unverified claims that eating lemons can help prevent infection with the new coronavirus. SA has seen a marked increase in demand for lemons from overseas markets, amid unverified claims that eating lemons and other foods commonly used as home remedies for flu and common colds can help prevent infection with the new coronavirus.

Ans- More than 4.5-million cartons of lemons have been shipped to date, double the 2019 volumes...

User Tryph
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