A stationery wholesaler can store printed notebooks for several years. Prepared fruit salad has to be sold on the day it is made. After both businesses have prepared the day’s goods, each product experiences the same unexpected percentage fall in market price for the rest of the day. Assume that no other factor affecting supply responsiveness differs between the businesses.
Which of the following is most likely to happen for the rest of the day?
Notebook supply shifts to the left by a larger amount because sellers withdraw stock from sale
Fruit salad quantity supplied falls by a larger proportion because the lower price cuts the profit on fruit salad
Both quantities supplied fall by the same proportion because both prices fall by the same percentage
Notebook quantity supplied falls by a larger proportion because sellers can hold stock back until later
236 exam-style questions on AQA GCSE Economics 1.3 How prices are determined, covering 1.3.1a Demand and the factors that influence it, 1.3.1b The demand curve, 1.3.2a Supply and the factors that influence it, 1.3.2b The supply curve, 1.3.3a Determining equilibrium price, 1.3.3b Applying diagrams and showing revenue, 1.3.4a Complements and substitutes, 1.3.4b Effects of changes on related markets, 1.3.5a Price elasticity of demand, 1.3.5b Factors affecting price elasticity of demand, 1.3.5c Measuring PED and its implications, 1.3.6a Price elasticity of supply, 1.3.6b Factors affecting price elasticity of supply, and 1.3.6c Measuring PES and its implications. Each one has a worked solution and a mark scheme showing where the marks go.