A-LevelEconomicsMarket Failure and Government InterventionOct/Nov 2010Paper 1 Q181 Mark

In the diagram, S₁S₁ and DD represent the original supply and demand curves for an agricultural product. [Figure 18.1] Bad weather then reduces supply to S₂S₂. The government does not allow the price to rise above OP₁. How much of the product will the government have to supply from stocks if the price is to be maintained at OP₁?

Q: What is the correct answer to this A-Level Economics question?

The correct answer is B: Q₁Q₃.

Q: What topic does this question test?

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

AOQ₃

BQ₁Q₃

CQ₁Q₂

DQ₂Q₃

✓ Correct Answer

The correct answer is B: Q₁Q₃

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

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2010 examination, Paper 1 Variant 2.

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