QUESTION 1 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 (10 Marks) Using the demand and supply model, explain what would happen in the market for lemons in South Africa, ceteris paribus. Question 1.2 (10 Marks)

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.