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?

Q: What topic does this question test?

This question tests Demand and Supply in A-Level Economics (syllabus code 9708). It is worth 1 mark.

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: The supply of taxi rides will become more price elastic.

📋 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 Demand and Supply in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2019 examination, Paper 1 Variant 2.

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