Carpet-cleaning businesses in a town have received more household bookings following an increase in the local population. In separate operational records, the businesses report that new cleaning machines have raised the number of jobs completed per worker. Table 1 gives market observations made three months apart.
| Measure | Earlier | Three months later |
|---|---|---|
| Equilibrium price per job | £85 | £80 |
| Equilibrium quantity per month | 1,800 jobs | 2,300 jobs |
Using the evidence, analyse how these developments may account for the later equilibrium and the change in the market’s total revenue.
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.