Economics (AS & A Level) · Oct / Nov 2021 · Paper 11 · Question 10

The diagram shows the demand and supply curves for a good in a free market. What can definitely be deduced from the diagram?

1. AAll the costs and benefits of consumption are reflected in OP1.
2. BAt OP1 consumer expenditure is greater than the firm's revenue.
3. CAt OP1 the price elasticity of supply is equal to one.
4. DThe market will not clear at a price of OP1.

As printed in the paper