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A-LevelEconomicsDemand and SupplyMay/June 2012Paper 1 Q111 Mark

The diagrams show a change in demand from D₁ to D₂ and a change in supply from S₁ to S₂ for four different goods. [Figure 11.1] Which diagram illustrates the good for which additional new uses have been found and which receives an increase in government subsidy?

ADemand increases, supply decreases.
BDemand increases, supply decreases.
CDemand decreases, supply increases.
DDemand increases, supply increases.

✓ Correct Answer

The correct answer is C: Demand decreases, supply increases.

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

Source

This question appeared in the Cambridge A-Level Economics May/June 2012 examination, Paper 1 Variant 2.

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