An increase in interest in camping means consumers plan to buy more tents at each price. At the same time, higher fabric costs mean producers plan to offer fewer tents at each price.
What can be concluded about the new market equilibrium?
The quantity traded must rise, while the price depends on the relative sizes of the shifts
The quantity traded must stay unchanged, while the price depends on the relative sizes of the shifts
The price must rise, while the quantity traded depends on the relative sizes of the shifts
The price must stay unchanged, while the quantity traded depends on the relative sizes of the shifts
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.