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A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2025 · Q111 Mark

The demand for electric vehicle batteries is derived from the demand for electric vehicles. To tackle climate change, a government subsidises producers of electric vehicles. What are the likely effects of this subsidy on the price and sales of electric vehicle batteries?

Aprice: decrease, sales: decrease
Bprice: decrease, sales: increase
Cprice: increase, sales: decrease
Dprice: increase, sales: increase

✓ Correct answer

D: price: increase, sales: increase

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About this question

Topic
The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2025 Paper 1 Variant 2, question 11.

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