A-LevelEconomicsThe Price System and the MicroeconomyMay/June 2021Paper 1 Q81 Mark
A market is in equilibrium with 100 units of the product sold at a price of US$10 each. The price elasticity of supply for the product is +2.0 and the price elasticity of demand is –1.0. What will be the state of the market if a minimum price of US$11 is imposed?
Aan excess demand of 10 units
Ban excess demand of 30 units
Can excess supply of 20 units
Dan excess supply of 30 units
✓ Correct Answer
The correct answer is D: an excess supply of 30 units
📋 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