At a weekend flower market, many independent stalls sell similar bunches of seasonal flowers at about £8 per bunch. Buyers can see every stall's price before choosing. One stall raises its price to £11 while the other stalls continue to charge about £8.
Which outcome is most likely?
Other stalls raise prices to £11 because similar products share one price
The stall's takings rise because it earns £3 more on every bunch it sells
Most buyers switch to other stalls, so the usual price stays close to £8
Most buyers stay because each stall chooses its own price independently
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.