Demand for locally roasted coffee increases and its market price rises. If other conditions are unchanged, how is the market most likely to reallocate resources?
Coffee becomes a free good because its price has increased
Consumers supply more coffee while producers reduce purchases
Resources leave coffee production because higher prices reduce every firm's revenue
Roasters expand and attract labour and equipment from less profitable uses
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.