A-LevelEconomicsElasticityFeb/Mar 2025Paper 1 Q81 Mark

The diagram shows the impact on equilibrium due to an increase in the costs of production. The original price is $72. The price elasticity of demand is -2.0. [Figure showing two supply curves S1, S2, and a demand curve D, with prices P2, 72, and quantities 60, 80] What is the new equilibrium price, P₂?

Q: What is the correct answer to this A-Level Economics question?

The correct answer is A: $81.00.

Q: What topic does this question test?

This question tests Elasticity in A-Level Economics (syllabus code 9708). It is worth 1 mark.

A$81.00

B$84.00

C$92.00

D$108.00

✓ Correct Answer

The correct answer is A: $81.00

📋 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 Elasticity in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2025 examination, Paper 1 Variant 2.

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