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?

Q: What topic does this question test?

This question tests The Price System and the Microeconomy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

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: As the price rises, total expenditure on the product stays the same.

📋 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 The Price System and the Microeconomy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2015 examination, Paper 1 Variant 2.

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