Table 1 summarises changes in two labour markets over a five-year period. The supply of workers to each occupation changed very little during this period.
| Measure | Food-testing technicians | Car-park attendants |
|---|---|---|
| Average hourly wage at the start of the period | £15.00 | £13.00 |
| Average hourly wage at the end of the period | £20.00 | £13.50 |
| Change in demand for the service produced | +35% | −20% |
| Change in output per worker per hour | +18% | 0% |
| Change in the price of equipment that can perform some workers' tasks | +10% | −35% |
The wage gap between the two occupations became larger during the period. Analyse how the evidence in Table 1 could account for this change.
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.