A-LevelEconomicsGovernment Intervention in MarketsOct/Nov 2020Paper 1 Q161 Mark
In year 1, in the market for a good represented in the diagram, the initial demand and supply conditions are shown by D₁ and S₁, and the government has set a maximum price of OP2. In year 2, demand increases to D2, but there are no other changes to the conditions of supply or to the maximum price. Which row accurately shows the price and quantity in the market in each year?
Ayear 1: price OP2, quantity OQ1; year 2: price OP1, quantity OQ4
Byear 1: price OP2, quantity OQ3; year 2: price OP2, quantity OQ5
Cyear 1: price OP3, quantity OQ2; year 2: price OP1, quantity OQ4
Dyear 1: price OP3, quantity OQ2; year 2: price OP2, quantity OQ3
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of government intervention in markets 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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