A dog-grooming salon advertises its services in a local newspaper. In the same week, it cuts its price from £45 to £35 per appointment, and its bookings rise from 32 to 68 appointments a week. The table shows its weekly demand schedule before and after the advertising campaign.
| Price per appointment | Appointments per week before advertising | Appointments per week after advertising |
|---|---|---|
| £45 | 32 | 46 |
| £35 | 50 | 68 |
Using the table, explain the effect of the price cut and the effect of the advertising campaign on the salon's demand curve.
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.