Table 1 shows the market demand for and supply of organic blueberries at a range of prices between 50 pence and 90 pence.
As a result of a successful health-awareness campaign, the demand for organic blueberries increases by 60% at each of the prices shown in Table 1.
| Price (pence) | Quantity supplied (000s) | Quantity demanded (000s) |
|---|---|---|
| 50 | 180 | 220 |
| 60 | 200 | 200 |
| 70 | 215 | 180 |
| 80 | 230 | 160 |
| 90 | 240 | 150 |
After the rise in demand:
at a price of 50 pence, excess demand increases by 80%
at a price of 90 pence, excess supply falls by 60%
the equilibrium market price increases by 50%
the price elasticity of demand increases by 60% at each price
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.