A-LevelEconomicsPrice Elasticity of Demand (PED)Oct/Nov 2015Paper 1 Q71 Mark
An individual reacts to a 5% increase in the price of good X by increasing the proportion of his income that he spends on good X from 2% to 3%. If there are no other changes, what can be concluded from this about the individual's demand for good X?
AIt is income-elastic.
BIt is income-inelastic.
CIt is price-elastic.
DIt is price-inelastic.
✓ Correct Answer
The correct answer is D: It is price-inelastic.
📋 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.
🔒
Unlock the Examiner's Analysis
Sign up for free to reveal the full examiner report, trap analysis, and mark scheme breakdown for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep