Skip to content
MathsGenie logo
Quick links
Open app

Course home

  1. A Level
  2. Economics Edexcel A
  3. Question bank

1.3 Market failure

EasyMediumHard
123456789101112131415161718192021222324252627282930313233
Question 3

Extract A: Lithium extraction and its impact on the viticulture industry in the Duero Valley

A multinational mining conglomerate has expanded its open-pit lithium extraction facility in the Duero Valley, generating substantial lithium dust emissions and depleting regional groundwater tables. The extraction process has led to severe soil salinization in adjacent lands, drastically reducing grape yields for local boutique vineyards and forcing the suspension of several high-end wine-tasting estates and eco-lodges during the harvest season.

Using the information in Extract A, draw an externalities diagram to show the likely impact of the lithium extraction on the regional viticulture and tourism industries.

[4]

1.3 Market failure Questions

  1. A Level
  2. /Economics
  3. /1.3 Market failure