A-LevelEconomicsGovernment Microeconomic InterventionMay/June 2020Paper 1 Q121 Mark
The diagram shows the supply curve of a product. [Figure 12.1] The government imposes a specific indirect tax of $5 on the product. How will the price elasticity of supply of the product change?
Afrom elastic (>1) to inelastic (<1)
Bfrom inelastic (<1) to elastic (>1)
Cfrom inelastic (<1) to unitary (=1)
Dfrom unitary (=1) to elastic (>1)
✓ Correct Answer
The correct answer is D: from unitary (=1) to elastic (>1)
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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