Frequent rain increases demand in the market for umbrellas. Supply remains unchanged.
| Price per umbrella | Quantity demanded before (thousand per week) | Quantity demanded after (thousand per week) | Quantity supplied (thousand per week) |
|---|---|---|---|
| £10 | 110 | 150 | 80 |
| £12 | 100 | 140 | 100 |
| £14 | 90 | 130 | 110 |
| £16 | 80 | 120 | 120 |
Using the table, identify the change in the equilibrium price and the change in the equilibrium quantity after demand increases.
Explain how market forces move the umbrella market from the original equilibrium to the new 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.