A-LevelEconomicsGovernment Intervention in MarketsFeb/Mar 2018Paper 1 Q161 Mark
The table shows the demand and supply schedules for a product before and after the government pays a subsidy of $4 per unit to the producers. price $ 6 8 10 12 14 quantity demanded (units) 250 200 150 100 50 quantity supplied before subsidy (units) 50 100 150 200 250 quantity supplied after subsidy (units) 150 200 250 300 350 Assuming that any extra sales are to new consumers, how much do the original consumers of the product save as a result of the subsidy?
A$300
B$600
C$900
D$1500
✓ Correct Answer
The correct answer is A: $300
📋 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.
🔒
Unlock the Examiner's Analysis
Sign up for free to reveal the full examiner report, trap analysis, and mark scheme breakdown for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep