In a town, prices for private mathematics tutoring are free to change. In the weeks before examinations, more families try to book lessons. Tutors decide how many hours to offer and whether to use their working time in tutoring or in other jobs.
State one function of price in a free market.
Explain one way in which a rise in the price of tutoring before examinations could lead to an efficient use of tutors' working time.
Explain one reason why changes in the price of tutoring may not lead to an efficient use of tutors' working time.
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.