The current market price of a one-hour driving lesson is £42. Table 1 shows the weekly quantity demanded and quantity supplied for driving lessons in a town.
| Price per lesson | Quantity demanded per week | Quantity supplied per week |
|---|---|---|
| £42 | 760 | 1,040 |
| £40 | 820 | 980 |
| £38 | 890 | 970 |
| £36 | 960 | 960 |
Explain how market forces are likely to move the market for driving lessons to equilibrium, including how this adjustment may affect the allocation of driving instructors' labour. Use Table 1 in your answer.
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.