Question:

4 In the US, the supply of meat from emus, a large bird, is price-elastic. Recently, US farmers have
switched to keeping other livestock and growing crops that changed their demand for labour. US
farmers are influenced by the subsidies the government provides for the production of selected
food items. Some people are reluctant to become farm workers as they think living standards are
low in rural areas.
(a) Define elastic supply. [2]
(b) Explain two reasons why a government may subsidise food production. [4]
(c) Analyse what influences a farmer’s demand for labour. [6]
(d) Discuss whether or not people living in cities have a higher living standard than those living in
rural areas. [8]

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