Practise equilibrium questions by locating the market-clearing price and explaining how demand and supply determine quantity.
With reference to the information given in 'Beating the congestion in Dhaka', explain one reason why prices for journeys using an auto rickshaw might be higher outside the city centre.
AO2 3 marks
Award 1 mark for identifying a relevant reason for the difference in price
Award 1 mark for developing the reason
Award 1 mark for the response being in the context of transport in Dhaka
- One reason is that there are likely to be fewer vehicles competing outside the city centre (1) because most of the 17 million people live in the city centre (1) and so there is less potential business for the drivers (1)
Accept any other appropriate response
(3)
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