A-LevelEconomicsDemand and SupplyFeb/Mar 2019Paper 1 Q71 Mark
A taxi firm raises fares at its busiest times by as much as five times the normal fare. Taxi drivers and customers are notified of the changes by mobile (cell) phone. What will result from this policy?
AIt will be less likely that there is a market equilibrium.
BPotential customers will have less perfect information.
CThe market surplus will become a shortage.
DThe supply of taxi rides will become more price elastic.
✓ 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...
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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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