A food factory's production lines can make either frozen pizzas or ready meals. Supermarkets start paying a higher price for ready meals, while the price of frozen pizzas and the factory's costs stay the same. How is the factory most likely to respond?
It moves more of its production lines to ready meals, because the higher price makes them more rewarding to produce
It keeps the same mix of products, because a change in price only affects the decisions of buyers
It makes more frozen pizzas, because their unchanged price now looks cheaper to supermarkets
It moves production lines away from ready meals, because the higher price will cut the number supermarkets buy
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.