Read the news article entitled "Fruit and veg prices tipped to rise as ABARES says value of farm produce to hit $65bn for 2020-21" by Kath Sullivan and answer the following questions. Specify any assumptions you have made and use clear, concise and coherent arguments. Wherever you use ideas from sources to support your arguments, please make sure you cite them. Please check below for more resources and submission link. [Note: additional research for this essay is NOT required] QUESTIONS: 1. Use a demand and supply model to explain and illustrate why vegetable price in Australia is likely to rise. (Hint: Make sure you discuss the equilibrating process, and clearly outline the determinants causing change in demand and/or supply) (6 marks). 2. Drawing on the determinants of price elasticity of demand, explaining whether the demand for vegetable in Australia is elastic or inelastic. (3 marks) 3. (a) Assume vegetables are sold in a perfectly competitive market and farmers are making zero economic profit prior to the change. Explain and illustrate graphically, the effect of increase in price on the short run position of a vegetable farmer. (3 marks) 4. (b) Based on the short run position identified in Q3 (a) explain and illustrate graphically effect of entry/exit on the long run position of the firm. (3 marks) (Hint: your answer should include graphs for both market and individual farmer) Your assignment will also be assessed on how effectively you can communicate with the reader; i.e. how well you have presented your arguments and ensured your analysis is logical and consistent. Consequently, 3 marks will be awarded for effective writing including proper grammar, referencing and formatting. Importantly, make sure you use appropriate diagrams in your analysis. Please check the feedback form for article analysis to find out how your assignment will be marked.

1. The word limit is 1000 2. Question-Answer format is acceptable. 3. Answer each question separately. 4. Make sure to fully label diagrams; and clearly indicate changes you make to graphs. 5. Specify any assumptions you make and use a clear, concise and coherent set of arguments in your discussion/analysis. 6. There is no need to provide actual data/numbers as this is a conceptual exercise. 7. Submit your assignment in a Word file (PDF or other format is not acceptable). 8. Support your discussion with appropriate graphs. 9. Hand-drawn graphs are accepted. 10. You can make use of the snipping tool to attach your hand drawn graphs to your word file. 11. There are no resubmissions allowed. 12. In the case of requiring an extension, you need to apply online through gradebook. It is important to provide supporting document (e.g. medical certificate, letter from employer) in order for us to process your request in a timely manner. 13. Requests for an extension will not be accepted after 5:00pm on July 30 (Friday). 14. In accordance with the Division of Business guidelines, assignments submitted late without permission from the course coordinator/s will attract a penalty of 2.5 marks (10% of the total marks for the assignment) per day for each day late, or part thereof, after the due date. 15. There is no need for additional references; however, you can draw upon other references (ensure these are cited) in support of any particular arguments you make in your discussion. 16. There is no minimum number of references recommended. 17. You need to provide references, using UniSA referencing guidelines only.