Several independent recording studios in a city each want to hire more sound engineers. Only a small number of people in the area have the skills the job needs. What is the most likely effect on the pay of these sound engineers?
Their pay stays the same because competition affects prices, not wages
Their pay falls as the studios cut costs to compete for customers
Their pay rises as each studio offers more to attract them
Their pay rises only after the studios raise prices for customers
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.