Question 3
Extract 1: FreshBox meal kits FreshBox sells weekly meal-kit subscriptions. A survey suggests customers respond to price, household income and the price of supermarket food. The firm is considering a price reduction.
| Weekly price | Quantity demanded | Total revenue |
|---|---|---|
| £30 | 8,000 | £240,000 |
| £27 | 10,000 | £270,000 |
a.[2]
Explain one difference between individual demand and market demand.
b.[2]
Using the table, calculate the percentage change in quantity demanded when price falls.
c.[6]
Using Extract 1, analyse why the price reduction may increase FreshBox's total revenue.
d.i.[2]
State two non-price determinants of demand identified in Extract 1.
d.ii.[2]
Explain how a rise in household income could shift demand for FreshBox meal kits.
d.iii.[6]
Evaluate whether FreshBox should reduce its weekly price to £27.
2.2 Demand Questions
41 exam-style questions on OCR GCSE Economics 2.2 Demand, covering 2.2.1 What is demand, 2.2.2 Draw a demand curve using data, 2.2.3 Explain a demand curve, 2.2.4 Shifts and movements of the demand curve, 2.2.5 Causes and consequences of demand changes, 2.2.6 Price elasticity of demand, 2.2.7 Draw demand curves of different elasticity, and 2.2.8 Importance of price elasticity of demand. Each one has a worked solution and a mark scheme showing where the marks go.