Over several seasons, glasshouse growers in England move space, workers and heating equipment out of salad leaves and into cut flowers. The costs of growing each crop are unchanged, and no government body directs the change.
How must relative prices most likely have changed to bring about this reallocation?
The price of cut flowers rose relative to the price of salad leaves.
The price of salad leaves rose relative to the price of cut flowers.
The price of cut flowers fell, so growers had to sell more to keep revenue up.
The prices of cut flowers and salad leaves both rose by the same percentage.
84 exam-style questions on AQA GCSE Economics 1.2 Resource allocation, covering 1.2.1a Markets, 1.2.1b Allocation of resources, 1.2.1c Factor and product markets, 1.2.2a Primary, secondary and tertiary sectors, 1.2.2b Goods and services, 1.2.3a Specialisation and the division of labour, 1.2.3b How and why producers specialise, and 1.2.3c Costs and benefits of the division of labour. Each one has a worked solution and a mark scheme showing where the marks go.