In the market for artisanal roasted coffee beans, at the current market price of £12 per kilogram, consumers wish to purchase 15,000 kilograms per month, while local roasters produce 11,000 kilograms per month.
It can be concluded that
the government must have successfully implemented a binding minimum price of £12 per kilogram.
there is disequilibrium in the market and the price of coffee beans is likely to fall.
there is disequilibrium in the market and the price of coffee beans is likely to rise.
the market is in a stable equilibrium because the actual quantity traded is limited to 11,000 kilograms.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.