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1.3 How prices are determined

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Question 42

A household must insert compatible coffee pods into a pod coffee machine to make coffee. The price of pod coffee machines rises.

a.

Name the relationship between pod coffee machines and compatible coffee pods.

[1]
b.

Table 1 shows two possible effects on the demand curve for compatible coffee pods.

ChangePossible effect
AA movement upwards and to the left along the existing demand curve
BA shift of the demand curve to the left

Explain whether Change A or Change B shows the likely effect of the rise in the price of pod coffee machines.

[2]
Markscheme

1.3 How prices are determined Questions

  1. GCSE
  2. /Economics
  3. /1.3 How prices are determined

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.

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