A-LevelEconomicsDemand and SupplyMay/June 2011Paper 1 Q71 Mark
The diagram shows the demand curve for a product with unitary price elasticity. What will happen with such a curve?
Afall in price will bring about an increase in expenditure on the product.
Bfall in price will bring about an increase in sales but a fall in expenditure on the product.
CAs the price rises, expenditure on the product stays the same.
DAs the price rises, expenditure on the product rises and then falls.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of demand and supply 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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