A-LevelEconomicsThe Price System and the MicroeconomyMay/June 2015Paper 1 Q81 Mark
The diagram shows the demand curve for a product with unitary price elasticity. [Figure 8.1] What will happen with such a curve?
Afall in price will bring about an increase in total expenditure on the product.
Bfall in price will bring about an increase in sales but a fall in total expenditure on the product.
CAs the price rises, total expenditure on the product stays the same.
DAs the price rises, total expenditure on the product rises and then falls.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of the price system and the microeconomy 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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