A-LevelEconomicsDemand and SupplyOct/Nov 2018Paper 1 Q101 Mark
The diagram shows the market for cocoa, which is a normal good. Initially the market is in equilibrium with price Pe and quantity Qe bought and sold. [Diagram] Which sequence of events (event 1 followed by event 2) must have occurred in order to move to the new equilibrium at point X?
Aevent 1: a decline in popularity of cocoa, event 2: the removal of a subsidy previously paid to cocoa producers
Bevent 1: a decrease in disposable income, event 2: a decrease in costs of producing cocoa
Cevent 1: an increase in disposable income, event 2: an increase in the number of cocoa producers
Devent 1: a successful advertising campaign by cocoa producers, event 2: an increase in the taxation of cocoa
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of demand and supply 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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