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
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The correct answer is D. This question tests the candidate's understanding of the price system and the microeconomy within the Economicssyllabus. The examiner's mark scheme requires...
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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...
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