In the market for bagged garden compost, demand decreases and, at the same time, supply increases.
Which statement describes the effect on the equilibrium in this market?
The price will fall and the quantity is certain to fall as well
The price will fall and the quantity is certain to rise as well
The price will fall, but the quantity could rise, fall or stay the same
The quantity will fall, but the price could rise, fall or stay the same
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.