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A-LevelEconomicsExternalities / Market FailureOct/Nov 2019Paper 3 Q31 Mark

The production of a good creates a constant marginal external cost at all levels of output. What value of price elasticity of demand for the good will cause the greatest deadweight welfare loss from the externality? A between zero and one B equal to one C greater than one D zero

Q: What topic does this question test?

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

📋 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 structured question tests Externalities / Market Failure in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2019 examination, Paper 3 Variant 3.

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