The market price of commercial laundry services rises. Later, the hourly wages paid by laundry firms increase. How should the first change and the second change be classified?
The market price rise causes a contraction of supply; the wage rise causes an increase in supply
The market price rise causes a decrease in supply; the wage rise causes an extension of supply
The market price rise causes an extension of supply; the wage rise causes a decrease in supply
The market price rise causes an increase in supply; the wage rise causes a contraction of supply
81 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.