A regional market for furniture removal has several established businesses. New low-cost providers begin trading. Established businesses respond by adopting digital route-planning systems.
Table 1 shows information about the market before and one year after the new providers entered.
| Indicator | Before entry | One year after entry |
|---|---|---|
| Number of businesses | 12 | 16 |
| Average charge for a standard local move | £640 | £590 |
| Moves completed per worker per month at established businesses | 5.0 | 6.2 |
| Workers employed by established businesses | 180 | 158 |
Using the data in Table 1, explain one benefit for consumers and one possible disadvantage for workers arising from the increase in competition.
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.