A-LevelEconomicsThe Price System and the MicroeconomyOct/Nov 2024Paper 1 Q71 Mark

A firm produces a good using a very labour-intensive process. There is an increase in the price of the good. Under which conditions will the supply of the firm's good be most price elastic?

Q: What topic does this question test?

This question tests The Price System and the Microeconomy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Anature of the labour employed by the firm: skilled, level of unemployment in the economy: high

Bnature of the labour employed by the firm: skilled, level of unemployment in the economy: low

Cnature of the labour employed by the firm: unskilled, level of unemployment in the economy: high

Dnature of the labour employed by the firm: unskilled, level of unemployment in the economy: low

✓ Correct Answer

The correct answer is C: nature of the labour employed by the firm: unskilled, level of unemployment in the economy: high

📋 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 The Price System and the Microeconomy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2024 examination, Paper 1 Variant 2.

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