Following an endorsement by a leading wellness influencer, the demand for premium organic matcha powder increases by 250 kg per week at every price point. At the same time, severe weather conditions in key harvesting regions reduce the supply of matcha powder by 150 kg per week at every price point.
Calculate the new equilibrium price and quantity. Use the last two columns of Table 1 for your working.
| Price (£ per kg) | Quantity demanded per week (kg) | Quantity supplied per week (kg) | New quantity demanded per week (kg) | New quantity supplied per week (kg) |
|---|---|---|---|---|
| 90 | 200 | 600 | ||
| 80 | 300 | 500 | ||
| 70 | 400 | 400 | ||
| 60 | 500 | 300 | ||
| 50 | 600 | 200 |
21 exam-style questions on Edexcel A A Level Economics 1.2.6 Price determination. Each one has a worked solution and a mark scheme showing where the marks go.