A ceramics producer can use the same workers and kilns to make garden planters or chimney pots.
| Product | Year 1 price per item | Year 1 cost per item | Year 2 price per item | Year 2 cost per item |
|---|---|---|---|---|
| Garden planters | £28 | £22 | £35 | £24 |
| Chimney pots | £32 | £25 | £30 | £27 |
Using the information in the table, explain how the producer is likely to change the distribution of its labour and capital between the two markets.
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.