Most bookings for evening dance classes in a town are made by adults aged 18 to 30. The number of residents in this age group falls from 14,000 to 11,500. A survey also finds that the proportion of this age group who consider dance classes fashionable falls from 41% to 26%.
Table 1 shows the market demand for bookings before and after these changes.
| Price per booking | Bookings demanded per week before | Bookings demanded per week after |
|---|---|---|
| £12 | 680 | 520 |
| £9 | 920 | 730 |
| £6 | 1,240 | 1,000 |
Using Table 1 and the additional information, explain the change in market demand for evening dance-class bookings.
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.