A-LevelEconomicsGovernment InterventionMay/June 2025Paper 1 Q141 Mark
The diagram shows the demand and supply for rice. The market for rice is initially in equilibrium at a price of P₁. The government introduces a maximum price of Pmax. At the same time the supply of rice increases. [Figure 14.1] What is the impact of these changes on the market for rice?
Anew market equilibrium will be established.
BAn illegal market for rice will develop.
CThere will be a shortage of rice.
DThere will be a surplus of rice.
✓ Correct Answer
The correct answer is A: new market equilibrium will be established.
📋 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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