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?

Q: What topic does this question test?

This question tests The Market System and the National Economy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

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: The firm's revenue will always be the same whatever the price.

📋 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 The Market System and the National Economy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2017 examination, Paper 1 Variant 2.

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