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How markets workGeneralMarket StructuresCompetitionAssessment

AQA GCSE · Question 21 · How markets work

Using Figure 3 and Table 3, assess whether the advantages of a competitive market such as a local farmers' market outweigh the disadvantages for consumers.

Figure 3 - Hill Green Farmers' Market
Hill Green Farmers' Market is a local village market. Many farmers come to the market to sell a wide range of fruit, vegetables, meat and other food that they have produced locally.
The Farmers' Market is well known in the region for selling high-quality, fresh food at competitive prices. It is easy for farmers to open a market stall and the set-up costs are low. In recent years, local farmers have struggled to recruit cheap labour for fruit picking and so costs of production for these farmers have begun to rise. Some customers have also complained that some market stalls have begun to look untidy.

Table 3 - Prices of selected products

Hill Green Farmers' MarketSupermarket
500 g minced beef£5.00£5.00
12 eggs£4.00£4.50
1 litre of milk£2.00£1.75
1 kg carrots£0.50£1.20

How to approach this question

1. Structure your answer with an introduction, a paragraph on advantages, a paragraph on disadvantages, and a conclusion. 2. In the advantages paragraph, use the source material to identify benefits for consumers (e.g., lower prices on some items, high quality, choice). Quote data from Table 3. 3. In the disadvantages paragraph, use the source material to identify drawbacks (e.g., higher prices on other items, untidiness, inconvenience, potential future price rises). Quote data from Table 3. 4. In the conclusion, make a judgement. 'Assess' requires you to weigh up the evidence. Conclude whether, on balance, the pros outweigh the cons, explaining that it may depend on the consumer's perspective.

Full Answer

This answer requires an assessment of the pros and cons for consumers of a competitive market like the Hill Green Farmers' Market, using the provided information. **Advantages for Consumers:** One major advantage of a competitive market is lower prices. Table 3 shows that for some products, the farmers' market is significantly cheaper. For example, 1 kg of carrots is £0.50 compared to £1.20 at the supermarket, and 12 eggs are £4.00 compared to £4.50. This increased purchasing power is a clear benefit for consumers. Furthermore, Figure 3 states the market sells 'high-quality, fresh food'. Competition between stallholders likely drives up quality as they compete for customers, which is another advantage. The market also offers a 'wide range of fruit, vegetables, meat and other food', increasing consumer choice. **Disadvantages for Consumers:** However, there are also disadvantages. The market is not always cheaper. Table 3 shows that 1 litre of milk is more expensive at the market (£2.00) than at the supermarket (£1.75). This suggests consumers may not save money on their entire shopping basket. Figure 3 also mentions disadvantages such as some stalls becoming 'untidy', which could detract from the shopping experience. A more significant issue is the location, as the nearest supermarket is '10 miles away', implying the farmers' market may be inconvenient for many to travel to, adding time and transport costs. Finally, Figure 3 notes that farmers' costs are rising due to labour shortages. This could lead to higher prices in the future, eroding the price advantage for consumers. **Assessment:** In conclusion, whether the advantages outweigh the disadvantages depends on the individual consumer's priorities. For a consumer who prioritises fresh, high-quality local produce and is looking to save money on specific items like carrots and eggs, the advantages are significant. The competitive nature of the market clearly benefits them in terms of price and quality for certain goods. However, for a consumer who values convenience, one-stop shopping, and consistently low prices across all items, the supermarket might be a better option. The disadvantages of potentially higher prices on some goods, untidiness, and the inconvenience of travel could outweigh the benefits. Overall, the farmers' market offers clear advantages, but they are not universal and are balanced by notable drawbacks for the modern consumer.
This is an assessment question that requires you to build an argument. A good answer will extract all the relevant information for and against the farmers' market from the consumer's point of view. - **Arguments for (Advantages):** Competitive prices (carrots, eggs), high quality, freshness, wide choice. These are hallmarks of competitive markets where firms must appeal to customers. - **Arguments against (Disadvantages):** Not always cheaper (milk), untidiness (a form of non-price competition or lack thereof), inconvenience (location), potential for future price rises (due to rising costs for producers). - **The Assessment:** The final step is to weigh these points. There is no single 'right' answer, but your conclusion must be justified based on the evidence you have presented. A strong conclusion might argue that for price-conscious consumers who value freshness, the benefits are likely to outweigh the costs, whereas for time-poor consumers, they may not.

Common mistakes

Only describing the advantages and disadvantages without making a final judgement or assessment. Another common mistake is not using the data and text provided in the source material.

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