A-LevelEconomicsThe price system and the microeconomy9708/32 · May/June 2019 · Q61 Mark

A consumer spends all of their income on two goods, Y and X, and is at position E. The price of X falls and the price of Y remains constant. The graph shows indifference curves and budget lines which are used to determine the price, income and substitution effects that are related to this price change.

6Which distance gives the income effect of this price change? A X1X2 B X1X4 C X2X4 D X5X6[1]

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Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, May/June 2019 Paper 3 Variant 2, question 6.

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