The market price of bicycles rises at the same time as the price of aluminium rises. What can be concluded about the supply curve for bicycles?
It must shift right because the market price rose
There must only be a movement along the original supply curve
Higher aluminium costs shift supply left, although the price rise may also cause a movement along a supply curve
Supply is unchanged because the two effects cancel
36 exam-style questions on OCR GCSE Economics 2.3 Supply, covering 2.3.1 What is supply, 2.3.2 Draw a supply curve using data, 2.3.3 Explain a supply curve, 2.3.4 Shifts and movements of the supply curve, 2.3.5 Causes and consequences of supply changes, 2.3.6 Price elasticity of supply, 2.3.7 Draw supply curves of different elasticity, and 2.3.8 Importance of price elasticity of supply. Each one has a worked solution and a mark scheme showing where the marks go.