A regional food-processing industry uses a new freight terminal. Table 1 shows the average time and cost of one delivery before and after the terminal opened.
| Measure | Before the terminal opened | After the terminal opened |
|---|---|---|
| Average delivery time | 10 hours | 8 hours |
| Average delivery cost | £500 | £440 |
Using the information in Table 1, explain how the freight terminal may raise productive capacity and suggest one possible effect on price stability in the long run.
121 exam-style questions on OCR GCSE Economics 3.7 Supply side policies, covering 3.7.1 What are supply side policies and 3.7.2 Costs and benefits of supply side policies. Each one has a worked solution and a mark scheme showing where the marks go.