A report on plastic waste makes refill packs of household cleaner more popular. At the same time, producers introduce automated filling equipment that lowers the cost of producing each pack.
Table 1 shows the market at the original equilibrium price before and after these changes.
| Price per pack | Quantity demanded before | Quantity supplied before | Quantity demanded after | Quantity supplied after |
|---|---|---|---|---|
| £4.00 | 8,000 per week | 8,000 per week | 10,500 per week | 12,000 per week |
Using Table 1, explain the likely effect of these changes on the equilibrium price and equilibrium quantity of refill packs.
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.