A-LevelEconomicsGovernment InterventionOct/Nov 2022Paper 1 Q151 Mark

A government fixes a maximum price for a product in order to increase its consumption. What would be the likely outcome of such a policy?

Q: What topic does this question test?

This question tests Government Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

AConsumption will fall if the maximum price is above the current equilibrium price.

BConsumption will rise if the maximum price is below the current equilibrium price.

CProduction will fall if the maximum price is above the current equilibrium price.

DProduction will fall if the maximum price is below the current equilibrium price.

✓ Correct Answer

The correct answer is D: Production will fall if the maximum price is below the current equilibrium price.

📋 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 Government Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2022 examination, Paper 1 Variant 2.

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