The table below shows the original market demand and supply schedules for organic macadamia nuts.
| Price per kg | Quantity Demanded (kg) | Quantity Supplied (kg) |
|---|---|---|
| £12\text{£}12£12 | 600 | 200 |
| £15\text{£}15£15 | 500 | 300 |
| £18\text{£}18£18 | 400 | 400 |
| £21\text{£}21£21 | 300 | 500 |
| £24\text{£}24£24 | 200 | 600 |
Following an increase in the price of cashew nuts (a close substitute), the demand for macadamia nuts increases by 150 kg at every price level. Concurrently, an increase in the cost of organic fertilizers reduces the supply of macadamia nuts by 50 kg at every price level.
At the new market equilibrium price, what is the total revenue?
£5,250\text{£}5,250£5,250
£7,200\text{£}7,200£7,200
£8,100\text{£}8,100£8,100
£9,450\text{£}9,450£9,450
11 exam-style questions on OCR A Level Economics The interaction of markets. Each one has a worked solution and a mark scheme showing where the marks go.