Many sixth form students will be aware that there are severe shortages of driving test slots pushing up waiting times to several months.

The shortage of driving tests reflects a classic case of excess demand over supply, with an average waiting time nearing 20 weeks in Wolverhampton. The problem is replicated across the UK. This disequilibrium has encouraged the rise of booking bots, a form of shadow market activity, where test slots are resold at inflated prices, exacerbating allocative inefficiency. High demand and limited examiner availability, worsened by sickness absences and weather disruptions, have restricted supply. To mitigate the backlog, increasing examiner numbers through higher overtime pay and fast-tracking recruitment could shift the supply curve rightward, easing pressure and reducing both waiting times and illicit market behaviour.

‘It’s nearly impossible’: learner drivers on the difficulty of booking a test | Motoring | The Guardian

1. Using a demand and supply diagram, show why there is a shortage of driving test slots when the price is £80 and explain why there is a disequilibrium using the functions of prices in your answer.

2. Discuss how and why a shadow market has emerged, where some people end up paying for a test slot at a price well above £80.

3. Evaluate measures that the government could be used to make the market for driving test slots work more efficiently.