Extract B (lines 22–24) states: ‘A growing desire to reduce greenhouse gas emissions from domestic heating has prompted governments to subsidise renewable alternatives, such as air-source heat pumps and biomass boilers.’
Explain how the development of these renewable heating alternatives is likely to affect the market for natural gas.
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.