Demand for home extensions rises. Building firms employ more bricklayers and buy more equipment before supplying additional extensions. Which chain is correct?
Higher product-market demand increases firms' demand in factor markets
Higher factor-market supply must reduce demand for extensions
Households supply extensions while firms demand them
The transactions all occur in the same market because they involve one industry
28 exam-style questions on OCR GCSE Economics 2.1 The role of markets, covering 2.1.1 What is a market, 2.1.2 Primary, secondary and tertiary sectors, 2.1.3 Factor and product markets, and 2.1.4 Specialisation and exchange. Each one has a worked solution and a mark scheme showing where the marks go.