A-LevelEconomicsMicroeconomics: Price SystemMay/June 2023Paper 1 Q51 Mark
Price plays a number of functions in the allocation of resources. Which statement best illustrates the function that relies upon consumer choice (sometimes known as the incentivising function)?
Aprice fall can show consumers that a good is becoming less popular.
Bprice fall tends to persuade some producers not to stay in the market for the good.
Cprice rise means consumers cannot afford to buy so much of a good.
Dprice rise tends to reduce competitiveness in the market for a good.
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of microeconomics: price system within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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