In the market for piano lessons, an economist predicts that the equilibrium price will rise, but that the equilibrium quantity may rise or fall depending on the relative sizes of one demand shift and one supply shift.
Which combination of shifts would make this prediction correct?
Demand increases and supply increases
Demand decreases and supply decreases
Demand increases and supply decreases
Demand decreases and supply increases
75 exam-style questions on OCR GCSE Economics 2.4 Price, covering 2.4.1 Price and distribution of resources, 2.4.2 Equilibrium price and quantity, 2.4.3 Draw the interaction of demand and supply, 2.4.4 Analyse the interaction of demand and supply, 2.4.5 Role of markets in allocating resources, and 2.4.6 Market forces and equilibrium. Each one has a worked solution and a mark scheme showing where the marks go.