Answer Happy

(2 marks) b) Prices of fresh produce soar in HK as virus curbs hit deliveries Hong Kong residents are facing a shortage of fresh food – and fast rising prices for what they can find in stock - as anti-virus controls in the mainland China leave truck drivers responsible for ferrying supplies unable to re-enter the city. Supermarket shelves across the city were bare yesterday, with only more expensive vegetables imported from overseas remaining. Demand peaks during the Chinese New Year holiday, which took place last week, and prices usually rise as supply struggles to keep up. The Straits Times 11 February 2022 (1) State the factor of demand that had caused the price of fresh produce in Hong Kong to rise. Use a market diagram to illustrate and explain how this factor led to the price increase (4 marks)

(ii) State the factor of supply that had caused the price of fresh produce in Hong Kong to rise. Use a market diagram to illustrate and explain how this factor led to the price increase. (4 marks) (iii) Use the concept of price elasticity of demand to explain why supermarket shelves had only more expensive vegetables imported from overseas remaining". (6 marks)