A same-day delivery firm can complete up to 60 deliveries each week. Later deliveries cost more because staff must work overtime and travel on longer routes.
| Group of weekly deliveries | Cost per delivery (£) |
|---|---|
| First 20 | 8 |
| Next 20 | 12 |
| Final 20 | 17 |
All other factors affecting supply remain unchanged.
The price charged per delivery rises from £13 to £18. Using the information above, explain how this affects the firm's quantity supplied.
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.