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The market system

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Question 2

Hand-painted ceramic tiles (azulejos) are a traditional decorative art form found throughout Portugal, used to adorn the walls of homes, churches, and public spaces. They have also become an increasingly popular purchase for international tourists wanting a unique keepsake of their holiday. While artisans originally sold these tiles in local workshops across the country, the surge in tourism has led many producers to relocate or focus their sales on high-footfall tourist districts, such as the Alfama neighborhood in Lisbon.

With reference to the information provided and your knowledge of economics, analyse how the equilibrium price of hand-painted ceramic tiles sold to tourists in Lisbon is determined.

[6]

The market system Questions

  1. IGCSE
  2. /Economics
  3. /The market system