O-LevelEconomicsThe allocation of resources2281/11 · May/June 2013 · Q91 Mark

When the price of a good doubles the demand falls by less than half, and the revenue received by the seller increases. What does this suggest about the good?

Ait has substitutes

Bit is a necessity

Cit is in fixed supply

Dit is perfectly elastic in demand

✓ Correct answer

B: it is a necessity

Oracle Prep sorts past-paper questions by topic, so you can drill The allocation of resources and see which topics are most likely to come up next.

Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2013 Paper 1 Variant 1, question 9.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content