What type of market structure do Coles and Woolworths operate in? Justify your answer with reference to some limited research and the appropriate economic theories. Your answer should include a diagram.
Based on your answer to Question 1, and with reference to the appropriate economic theories, discuss the effects of pricing in this market, especially in regards to revenues. Is it in the interests of Woolworths and Coles to have a price discount war? Why or why not?
What type of market structure is the market for vegetables provided by farmers? Explain why with reference to Sources 2 and 3 and the appropriate economic theories.
How would falling prices for vegetable products due to the price war affect the individual vegetable producer? Demonstrate your answer with reference to a diagram showing only an individual farmer’s cost curves. Would small farmers be forced to leave the market in the long-run? Why or why not?
Use the above sources and some limited research to answer the following questions.
Based on the article and graphs above, what phase of the business cycle do you believe Spain was in during 2013? Explain why with reference to theory and represent this phase of the business cycle using an aggregate demand and supply model.
Based on the article and graphs above, what phase of the business cycle do you think Spain has entered in 2014? Why? Use your aggregate demand and supply model from Question 1 to demonstrate what happened to the economy in 2014.
Given Spain’s most recent unemployment rate, if 17,353,000 people were currently employed how many people would be unemployed?
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