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1. What type of market structure is the supermarket industry? Explain why with reference to Sources 1 and 2 and economic theory.   
2. Is it in the interests of Woolworths and Coles to have a price discount war? Why? What would be a better strategy for Coles and Woolworths to take in regards to pricing? (Refer to the kinked demand curve and game theory in your answer.
3. What type of market structure is the market for vegetables provided by farmers? Explain why with reference to Sources 1 and 2 and economic theory.
4. How would falling prices for their products due to the price war affect the individual vegetable producer? Demonstrate your answer with reference to a diagram showing only an individual farmer’s cost curves. Would small farmers be forced to leave the market in the long-run? Why?  
5. If individual farmers made significant improvements in their technologies could they overcome the price falls discussed above and stay in business in the long-run? Support your answer by referring/adding to your diagram in 4 and thinking about costs.     



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