A charcoal merchant can keep sealed bags in a warehouse for several months. Ready-mixed concrete must be delivered soon after it is prepared. Both products experience the same unexpected percentage rise in market price for one week. Other influences on producers’ ability to respond are similar.
Which statement is most likely to be correct?
Concrete quantity supplied falls by a larger proportion because a higher price reduces producers’ willingness
Concrete quantity supplied rises by a larger proportion because rapid delivery makes producers more responsive
Charcoal quantity supplied rises by a smaller proportion because warehouse stock is not current supply
Charcoal quantity supplied rises by a larger proportion because stored bags can be released for sale
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.