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?
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. This question tests the candidate's understanding of the price system and the microeconomy within the Economicssyllabus. The examiner's mark scheme requires...
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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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