A-LevelEconomicsPrice ElasticityMay/June 2022Paper 1 Q91 Mark

What would be the most likely reason for a firm's decision to calculate the price elasticity of demand for its product?

Q: What topic does this question test?

This question tests Price Elasticity in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Ato provide retail statistics for the government

Bto predict the change in its total revenue after it raises prices

Cto calculate the firm's competitive position

Dto enable the firm to complete consumer satisfaction surveys

✓ Correct Answer

The correct answer is B: to predict the change in its total revenue after it raises prices

📋 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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About This A-Level Economics Question

Topic

This multiple-choice question tests Price Elasticity in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2022 examination, Paper 1 Variant 2.

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