A-LevelEconomicsGovernment Intervention in MarketsMay/June 2022Paper 1 Q151 Mark
The demand and supply functions for a product are quantity demanded = 1500 + 50P and quantity supplied = 300P – 2000 where P = price. With government regulation, the current price in the market is $15. What can be concluded about the form of price regulation and the balance of demand and supply in the market?
Aform of price regulation: effective maximum price, balance of demand and supply: excess demand
Bform of price regulation: effective maximum price, balance of demand and supply: excess supply
Cform of price regulation: effective minimum price, balance of demand and supply: excess demand
Dform of price regulation: effective minimum price, balance of demand and supply: excess supply
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of government intervention in markets 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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