A-LevelEconomicsGovernment Intervention (Price Controls)May/June 2016Paper 1 Q171 Mark
In the diagram, DD is the demand curve for an agricultural commodity, S₁ is the supply curve in period 1 and S2 is the supply curve in period 2. The broken curve is a rectangular hyperbola. [Figure X.X] The government operates a buffer stock scheme fixing the price at OP₁ in period 1 and OP2 in period 2. How do output and farm revenue in period 2 compare with period 1?
Ahigher, same
Bhigher, higher
Clower, higher
Dlower, same
✓ Correct Answer
The correct answer is A: higher, 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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