In the market for strawberries, at the current market price of £4 per punnet, consumers buy 8,000 punnets and growers produce 10,000 punnets each week.
It can be concluded that
consumers are unaware of the positive externalities from eating strawberries.
the government must have set a maximum price for strawberries.
the prices of substitute fruits such as raspberries have risen.
there is disequilibrium in the strawberry market and the price is likely to fall.
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.