A-LevelEconomicsThe Price System and the MicroeconomyMay/June 2015Paper 1 Q91 Mark
The diagram shows the effect on the market for rice of a change in government policy that causes a shift in the supply curve from S to S₁. [Figure 9.1] What does the area JKLM represent?
Athe cost to the government of a subsidy to rice growers
Bthe extra saving to importers of the removal of a tariff on rice
Cthe increase in consumer surplus from the introduction of a maximum price for rice
Dthe loss in government revenue from the reduction in a lump sum tax on rice
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of the price system and the microeconomy 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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