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1.2.2 Demand

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Question 4

Extract A

The rise of Refurbished Bicycle Cooperatives (RBCs)

The UK's Refurbished Bicycle Cooperatives (RBCs) have experienced significant growth, offering cheap alternatives to traditional cycle shops. These community-led hubs repair and sell donated or salvaged bicycles at fraction-of-the-market rates. While high-end boutique bike shops struggle with declining retail sales, demand for RBC services has surged.

With household utility bills and grocery prices rising rapidly, average wages have struggled to keep pace, leaving consumers with less disposable income. Instead of spending upwards of £600 on a brand-new commuter bicycle, many individuals are turning to RBCs, where they can purchase a fully serviced, roadworthy second-hand bike for £45. For low-income workers, this £45 expense offers immediate, high-utility transport to work, avoiding rising public transport fares. Some critics, however, point out that RBCs operate with volunteer labor or subsidized apprenticeships, which keeps operating costs artificially low and distorts competition for standard independent bike dealers.


Question

Examine two reasons why the demand for RBCs increases during a period when 'average wages struggle to keep pace' with rising living costs (Extract A).

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1.2.2 Demand Questions

  1. A Level
  2. /Economics
  3. /1.2.2 Demand