Table 1 shows demand for recycled-fibre loft insulation before and after the price of mineral-wool loft insulation rises. The supply of recycled-fibre insulation is unchanged.
| Price of mineral-wool insulation per roll | Quantity of recycled-fibre insulation demanded per month at £30 per roll |
|---|---|
| £20 | 8,000 rolls |
| £25 | 10,400 rolls |
State the relationship between the two types of insulation and explain the likely effect of the rise in the price of mineral-wool insulation on the equilibrium price and quantity of recycled-fibre insulation.
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.