O-LevelEconomicsThe allocation of resources2281/11 · May/June 2023 · Q211 Mark

A government has introduced a tax on a necessity. Producers have passed on a large proportion of this tax to consumers in the form of higher prices. Which row is correct?

Adirect, price elastic

Bdirect, price inelastic

Cindirect, price elastic

Dindirect, price inelastic

✓ Correct answer

D: indirect, price inelastic

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2023 Paper 1 Variant 1, question 21.

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