The market is for places on weekly evening pottery workshops. The market price was initially £40 per place. Household real incomes then rose. After this change, the organiser reduced the price to £35 per place.
Table 1 shows the weekly quantity demanded before and after the rise in real incomes.
| Price per place | Before the rise in real incomes | After the rise in real incomes |
|---|---|---|
| £40 | 320 | 400 |
| £35 | 450 | 540 |
Explain how each event changes demand and quantity demanded, using Table 1.
Calculate the overall change in weekly quantity demanded between the initial position and the final position.
82 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.