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Bottom of graph is quantity In 2019-20 bushfires caused extensive damage to orchards and infrastructure in the New South Wales apple-producing districts of Batlow and

Bottom of graph is quantity

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In 2019-20 bushfires caused extensive damage to orchards and infrastructure in the New South Wales apple-producing districts of Batlow and Bilpin which produce about 10 per cent of Australia's annual crop. a) Use the graphical marketing margin framework shown in the diagram below to illustrate and explain, ceteris paribus, the potential impacts of the bushfires on the marketing margin of apples. (6 marks) b) Use the same graphical marketing margin framework to illustrate and explain, ceteris paribus, the potential impacts of the bushfires on the marketing margin as retail demand becomes more price-elastic. (6 marks) c) Would you expect the own-price elasticity of supply of Australian apples to be price elastic or price inelastic? Justify your answer by discussing the key determinants of the own-price elasticity of supply of apples. (8 marks) Price Derived supply 1 Retail Primary supply 1 Farm Primary demand Derived demand

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