A-LevelEconomicsThe Price System and the MicroeconomyMay/June 2022Paper 1 Q161 Mark
To improve the air quality for its citizens, a government introduces a subsidy for the producers of cars powered by batteries charged from the electricity supply. What are the likely effects of this subsidy on the price and sales of electricity?
Aprice of electricity: falls, sales of electricity: falls
Bprice of electricity: falls, sales of electricity: rises
Cprice of electricity: rises, sales of electricity: falls
Dprice of electricity: rises, sales of electricity: rises
✓ Correct Answer
The correct answer is D: price of electricity: rises, sales of electricity: rises
📋 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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