Economics

  . Assumin" rel="nofollow">ing tomatoes are sold in" rel="nofollow">in a purely competitive market, use the supply and demand diagram to describe, ceteris paribus, a major factor contributin" rel="nofollow">ing to the price of tomatoes to rise in" rel="nofollow">in Australia. In your discussion make sure to explain" rel="nofollow">in the process of movin" rel="nofollow">ing to the new equilibrium output and price. (5 marks) b. How would this impact other markets in" rel="nofollow">in the in" rel="nofollow">industry? (2 marks)   2.a. Usin" rel="nofollow">ing the determin" rel="nofollow">inants of price elasticity of demand, discuss whether you thin" rel="nofollow">ink the price elasticity of demand for tomatoes to be elastic or in" rel="nofollow">inelastic. (4 marks) b. Based on your answer in" rel="nofollow">in part 2(a), explain" rel="nofollow">in and illustrate hypothetically, what should be the effect of the risin" rel="nofollow">ing price of tomatoes on the total revenue of the tomatoes wholesale market. (3 marks)     3.a. Considerin" rel="nofollow">ing the fact that many tomato farmers could abandon the in" rel="nofollow">industry, explain" rel="nofollow">in graphically, the different strategies that government should adopt to sustain" rel="nofollow">in the long-term supply of tomatoes. (5 marks) b. Make sure to discuss the advantages and disadvantages of the strategies you have mentioned. (3 marks)