Table 1 shows the weekly demand and supply for rehearsal studio hours. The current price is £18 per studio hour.
| Price per studio hour | Quantity demanded (hours per week) | Quantity supplied (hours per week) |
|---|---|---|
| £18 | 1,200 | 800 |
| £22 | 1,000 | 1,000 |
Calculate the difference between quantity demanded and quantity supplied at the current price, and state whether this is excess demand or excess supply.
Using the information in Table 1, explain how market forces are likely to move this market to equilibrium.
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.