A-LevelEconomicsGovernment InterventionMay/June 2025Paper 1 Q111 Mark

An indirect tax is imposed on good X. Which situation is most likely to result in producers bearing a higher burden of the tax?

Q: What topic does this question test?

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

Aprice elasticity of demand is elastic

Bprice elasticity of demand is inelastic

Cprice elasticity of supply is elastic

Dprice elasticity of supply is inelastic

✓ Correct Answer

The correct answer is A: price elasticity of demand is elastic

📋 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 Government Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2025 examination, Paper 1 Variant 2.

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