A heritage railway has 240 seats on one particular journey and makes all 240 seats available at any fare. The table shows the number of seats passengers plan to book at different fares, before and after an increase in demand.
| Fare per seat | Before: seats demanded | After: seats demanded | Seats supplied |
|---|---|---|---|
| £20 | 330 | 420 | 240 |
| £25 | 285 | 375 | 240 |
| £30 | 240 | 330 | 240 |
| £35 | 195 | 285 | 240 |
| £40 | 150 | 240 | 240 |
Using the table, which statement correctly compares the two equilibrium outcomes?
The equilibrium fare rises from £30 to £40, while the number of seats booked rises from 240 to 330
The equilibrium fare rises from £30 to £35, while the number of seats booked stays at 240
The equilibrium fare rises from £30 to £40, while the number of seats booked stays at 240
The equilibrium fare falls from £40 to £30, while the number of seats booked stays at 240
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.