A town's restaurants buy more bread from local bakeries. At the same time, some experienced bakers who had planned to retire remain in work. The table shows the weekly demand for and supply of bakers' labour before and after these changes.
| Hourly wage | Hours demanded before | Hours supplied before | Hours demanded after | Hours supplied after |
|---|---|---|---|---|
| £14 | 1,000 | 600 | 1,200 | 800 |
| £16 | 800 | 800 | 1,000 | 1,000 |
| £18 | 600 | 1,000 | 800 | 1,200 |
Calculate the change in the equilibrium quantity of labour.
Explain what happens to the equilibrium wage after these changes.
80 exam-style questions on OCR GCSE Economics 2.7 The labour market, covering 2.7.1 Role and operation of the labour market, 2.7.2 Determination of wages, 2.7.3 Explain gross and net pay, and 2.7.4 Calculate gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.