A peak-time train has a fixed number of seats. More commuters want to travel than there are seats, so the fare rises. What is the most likely effect of the fare increase?
The higher fare removes commuters unwilling or unable to pay, so the fixed number of seats goes to those willing and able to pay
The higher fare signals that the fixed number of seats is less scarce relative to commuters' demand
The higher fare encourages more commuters to travel at peak time, so the excess demand for the fixed number of seats grows
The higher fare allocates seats to commuters who value the journey most, even if they cannot afford to pay
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.