A-LevelEconomicsGovernment Microeconomic InterventionFeb/Mar 2022Paper 1 Q181 Mark
The bus fare in a rural area is $5 per journey. The government decides to improve local transport by giving bus firms a subsidy of $2 per journey. The diagram shows the possible changes in demand and supply. What is the new quantity of journeys and the bus fare for a journey? [Figure 18]
Aquantity of journeys: 950, bus fare ($): 3
Bquantity of journeys: 950, bus fare ($): 7
Cquantity of journeys: 1050, bus fare ($): 4
Dquantity of journeys: 1050, bus fare ($): 6
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The correct answer is C. This question tests the candidate's understanding of government microeconomic intervention 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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