A-LevelEconomicsMicroeconomics: Demand and SupplyFeb/Mar 2020Paper 1 Q51 Mark

In which circumstance will the total expenditure by consumers on a good increase when its price increases?

Q: What topic does this question test?

This question tests Microeconomics: Demand and Supply in A-Level Economics (syllabus code 9708). It is worth 1 mark.

ADemand for the good is income elastic.

BDemand for the good is price inelastic.

CThe price of a complementary good also increases.

DThe price of substitute goods also increases.

✓ Correct Answer

The correct answer is B: Demand for the good is price inelastic.

📋 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 Microeconomics: Demand and Supply in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2020 examination, Paper 1 Variant 2.

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