Table 1 shows weekly labour demand and supply before and after changes in an occupation.
| Hourly wage | Old labour demanded | Old labour supplied | New labour demanded | New labour supplied |
|---|---|---|---|---|
| £10 | 150 | 90 | 180 | 80 |
| £12 | 120 | 120 | 150 | 100 |
| £14 | 90 | 150 | 120 | 120 |
| £16 | 60 | 180 | 90 | 140 |
Using Table 1, how do the equilibrium wage and employment change?
Employment falls by 20 workers and the wage falls by £2
Employment rises by 20 workers and the wage rises by £2
Employment stays at 120 workers and the wage falls by £2
Employment stays at 120 workers and the wage rises by £2
149 exam-style questions on AQA GCSE Economics 1.5 Competitive and concentrated markets, covering 1.5.1a The range of market structures, 1.5.1b Distinguishing between market structures, 1.5.2a Characteristics of a competitive market, 1.5.2b How producers operate in competitive markets, 1.5.2c The economic impact of competition, 1.5.3a Characteristics of a non-competitive market, 1.5.3b How producers operate in non-competitive markets, 1.5.3c Monopoly and oligopoly, 1.5.4a The labour market and wage determination, and 1.5.4b Gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.