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A-LevelEconomicsDemand and SupplyFeb/Mar 2016Paper 1 Q81 Mark

In the diagram the rectangular hyperbola, DD, represents a firm's demand curve.

AAn increase in the quantity supplied causes a fall in total revenue.
BThe price elasticity of demand decreases as we move down the demand curve.
CThe sale of an extra unit gains no extra revenue.
DTotal expenditure on the commodity decreases as the price falls.

✓ Correct Answer

The correct answer is C: The sale of an extra unit gains no extra revenue.

📋 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 Demand and Supply in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2016 examination, Paper 1 Variant 2.

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