Alder Homes Ltd has secured 900 cubic metres of building timber. Table 1 shows the timber requirement and the number of interested households for two types of home. No more timber is available this year.
| Type of home | Timber required per home (cubic metres) | Interested households |
|---|---|---|
| Starter home | 15 | 70 |
| Luxury home | 45 | 24 |
Using Table 1, analyse how timber scarcity may affect Alder Homes Ltd's decisions about what to produce and for whom to produce.
81 exam-style questions on AQA GCSE Economics 1.1 Economic foundations, covering 1.1.1a Needs and wants, 1.1.1b The central purpose of economic activity, 1.1.1c Key economic decisions, 1.1.1d The main economic groups, 1.1.2a The nature of an economic resource, 1.1.2b The four factors of production, 1.1.3a The basic economic problem and making choices, and 1.1.3b Opportunity cost. Each one has a worked solution and a mark scheme showing where the marks go.