A-LevelEconomicsThe Market System and the National EconomyFeb/Mar 2017Paper 1 Q71 Mark
The price elasticity of demand for a firm's product is equal to one for all price changes. What would be the result of this?
Apercentage increase in price will cause demand to fall by a larger percentage.
Bpercentage increase in price will cause demand to increase by the same percentage.
CQuantity demanded will always be the same whatever the price.
DThe firm's revenue will always be the same whatever the price.
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of the market system and the national economy 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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