Two changes affect the market for analogue alarm clocks at the same time. Together they will lower the equilibrium price, but the direction of the change in equilibrium quantity cannot be predicted without knowing the size of each change.
Which pair of changes would have this effect?
Analogue alarm clocks become less fashionable, while improved assembly technology lowers unit costs
Analogue alarm clocks become less fashionable, while higher component prices raise production costs
Analogue alarm clocks become more fashionable, while improved assembly technology lowers unit costs
Analogue alarm clocks become more fashionable, while higher component prices raise production costs
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.