In a local market for packets of wildflower seeds, sellers offer 600 packets a week at £7 per packet, but buyers want 420 packets. The equilibrium price is £5 per packet. What is most likely to happen as the market adjusts?
Sellers cut the price until they wish to sell only 420 packets a week
Sellers cut the price, attracting more buyers until the surplus disappears
The price stays at £7 because sellers decide what to charge
Buyers compete for the packets, pushing the price above £7
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.