A neighbourhood laundry operates in a competitive market. It introduces a booking system that reduces customers' waiting time.
Which outcome is most likely over time?
It could attract customers initially, but rivals copying the system would tend to remove its advantage over time
It could reduce waiting times, but would probably make it harder for new laundries to enter
It might reduce waiting times, and rival laundries would probably leave the market rather than respond
It might attract customers initially, and extra demand could give it lasting freedom to raise its price
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.