The market for specialized running shoes experiences an increase in the market price and an increase in the equilibrium quantity (output) of running shoes. Which of the following combinations of events is the only one that could have caused these changes?
A fall in the price of rival brand training shoes and a fall in the cost of synthetic rubber
An increase in safety regulation compliance costs for factories and a fall in manufacturing productivity
A rise in the price of rival brand training shoes and a rise in the cost of synthetic rubber
New entry of manufacturing firms into the running shoe market and a reduction in the wages of assembly workers
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.