An independent language school raises the fee for its evening conversation classes. Weekly bookings fall, while all other influences on demand remain unchanged. The manager classifies this as 'a decrease in demand'.
Which of the following correctly evaluates the manager's classification?
It is incorrect, because bookings measure the school's planned supply of class places.
It is correct, because the class fee is a non-price influence on demand.
It is correct, because any fall in bookings is a decrease in demand.
It is incorrect, because the fee rise causes a contraction of demand.
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.