Table 1 shows the weekly market demand for and supply of artisanal oat milk at a range of prices between £4.00 and £8.00 per litre.
Following a successful social media endorsement by a prominent health influencer, the demand for artisanal oat milk increases by 50% at each of the prices shown in Table 1.
| Price per litre (£) | Quantity supplied (000s of litres) | Quantity demanded (000s of litres) |
|---|---|---|
| 4.00 | 110 | 180 |
| 5.00 | 150 | 150 |
| 6.00 | 165 | 135 |
| 7.00 | 180 | 120 |
| 8.00 | 190 | 100 |
After the rise in demand:
at a price of £4.00, excess demand increases by 150%.
at a price of £8.00, excess supply falls by 50%.
the equilibrium market price increases by 40%.
the price elasticity of demand increases by 50% 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.