Demand for heat pumps rises after an information campaign, while a shortage of installers raises firms' costs. Table 1 shows the market before and after both changes.
| Measure | Before changes | After changes |
|---|---|---|
| Equilibrium price | £7,800 | £9,600 |
| Equilibrium quantity per year | 4,000 | 4,100 |
| Producer revenue | £31.2 million | £39.36 million |
Using Table 1, analyse why the equilibrium price rises sharply while equilibrium quantity changes only slightly.
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.