Fewer buyers want locally grown cut flowers at each price, while higher greenhouse heating costs reduce the quantity growers are willing to supply at each price. Which outcome must occur at the new equilibrium?
Equilibrium quantity falls, and the price also rises
Equilibrium quantity falls, and the price also falls
The change in both equilibrium price and equilibrium quantity depends on the relative size of the shifts
Equilibrium quantity falls, while the change in price depends on the relative size of the shifts
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.