A-LevelEconomicsThe Price System and MicroeconomyFeb/Mar 2022Paper 1 Q101 Mark
A firm estimates that the price elasticity of supply of its product is +1.5. What does this indicate?
AThe firm has available stock.
BThe firm has no excess capacity.
CThe firm operates in a competitive market.
DThe firm raises its price by 10% and its total revenue increases by 15%.
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of the price system and 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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