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1.3 How prices are determined

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Question 91

The price of a smart-home hub falls from £80 to £60. The table shows the monthly demand for compatible wireless door sensors before and after the price change. The supply of wireless door sensors is unchanged.

Price per wireless door sensorQuantity demanded before the hub price fellQuantity demanded after the hub price fell
£204,0005,200
£253,2004,400

Using the data, explain how the fall in the price of smart-home hubs is likely to change the equilibrium price of wireless door sensors.

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Markscheme

1.3 How prices are determined Questions

  1. GCSE
  2. /Economics
  3. /1.3 How prices are determined

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.

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