The table shows the initial monthly demand and supply for driving lessons in a town.
| Price per lesson | Quantity demanded (lessons per month) | Quantity supplied (lessons per month) |
|---|---|---|
| £30 | 900 | 300 |
| £40 | 700 | 700 |
| £50 | 500 | 1,100 |
| £60 | 300 | 1,500 |
Following two separate changes, quantity demanded increases by 400 lessons per month at every price and quantity supplied decreases by 200 lessons per month at every price.
Calculate the new equilibrium price and quantity.
Using the data, explain which of the two shifts had the greater effect on the equilibrium quantity of driving lessons.
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.