Following a highly publicised medical report linking the consumption of synthetic food colorings to hyperactivity in children, a major confectionery manufacturer noted that sales of its all-natural fruit gummies surged by 40% over a three-month period, even though the retail price of these fruit gummies remained completely unchanged.
On a standard demand and supply diagram for all-natural fruit gummies, this development is illustrated by:
a shift of the demand curve to the right.
a movement along the demand curve to the right.
a shift of the demand curve to the left.
a movement along the demand curve to the left.
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.