A-level Paper 1, November 2021Markets and Business Behaviour
A-level Paper 1, November 2021, Q5(a)
Draw diagrams showing the equilibrium positions for both the lemon market and a typical firm in the long run.
Short answerDraw4 marks
Context
In Sicily, many households can grow lemons of the same quality as each other. Chiara decides to sell lemons at her local market, expecting to make a normal profit. She notices that all of the many lemon sellers are charging exactly the same price.
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