Coach companies in a region now want fewer qualified coach drivers than before at every wage rate. The number of qualified drivers willing and able to work at each wage rate has not changed.
Which statement best describes what happens to the wage rate for qualified coach drivers?
At the old wage, more drivers want work than firms want to employ, so the wage falls
At the old wage, firms want to employ more drivers than want work, so the wage falls
At the old wage, more drivers want work than firms want to employ, so the wage rises
The wage does not change, because the number of drivers willing to work is the same
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.