A-LevelEconomicsBasic Economic Ideas & Resource AllocationMay/June 2014Paper 1 Q181 Mark
In the diagram, the initial quantity traded was Q and the price was P. [Figure: Supply and Demand graph with initial price P and quantity Q, then a rise to P₁ and Q₁]
Athe removal of a maximum price and the imposition of an income tax on consumers
Bthe removal of a maximum price and the removal of a subsidy to producers
Cthe removal of a minimum price and the granting of a subsidy to producers
Dthe removal of a minimum price and the imposition of an indirect tax on the product
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of basic economic ideas & resource allocation within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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