Merefield is a region where flower growing and packing is a major industry. Income earned from selling flowers is exchanged for goods produced in other regions.
| Measure | Merefield |
|---|---|
| Share of employed people working in flower growing and packing | 42% |
| Share of flower sales made to buyers outside the region | 75% |
Sales to buyers outside Merefield fall by 20%, while sales to buyers within Merefield do not change.
Analyse how this change is likely to affect employment and income in Merefield. Use both figures in the table in your answer.
76 exam-style questions on OCR GCSE Economics 2.1 The role of markets, covering 2.1.1 What is a market, 2.1.2 Primary, secondary and tertiary sectors, 2.1.3 Factor and product markets, and 2.1.4 Specialisation and exchange. Each one has a worked solution and a mark scheme showing where the marks go.