A-LevelEconomicsThe Price System and the MicroeconomyOct/Nov 2025Paper 1 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
The correct answer is D. This question tests the candidate's understanding of the price system and the microeconomy 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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