QUESTION 1 Read the extract below and answer the questions that follow. A farmer hires 5 acres of land. He has to pay R5 000 rent to the owner period he has to use it. The farmer needs labourers to work on the field He hires 4 labourers in the first two months to till the soil, sow seeds, tra seedlings and planting them by hand, fertilising and irrigating the field. The wage rate prevailing in the market is R75 per worker per day. The fa only two workers for two months to look after the standing crop. When th harvesting arrives, he hires 4 workers for 15 days. The farmer has to acquire raw materials such as seeds, water, fertilizer, p and spent R3 000. He rent tractor and pays rent for R2 500. After harvest 30 tonnes of rice. Source: https://www. 1.1 State the market structure in which the farmer operates. 1.2 Describe the demand curve of the farmer. Justify your answer. 1.3 State the degree of elasticity of the demand curve in 1.2 above. 1.4 Name the workforce group that is entitled to the minimum wage in South and the current wage rate. 1.5 List the fixed costs incurred by the farmer from the extract above.
