At a price of £3.20 per box, sellers offer 12,000 boxes of breakfast cereal per week. Consumers are willing to buy 9,500 boxes per week at this price.
Calculate the excess supply of breakfast cereal at this price.
State the likely change in the market price as sellers respond to this excess supply.
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.