Economics (AS & A Level) Paper 23
Oct / Nov 2021·9708·4 questions
Mock exam: 90 min, official timing
Question paper
Question 1
Question 2
Question 3
Question 4
Mark scheme
Question 1
1(a)[2]
1(b)(i)[1]
1(b)(ii)[2]
1(c)[3]
1(d)[6]
1(e)[6]
Question 2
2(a)[8]
2(b)[12]
Question 3
3(a)(i)
a bad idea for a firm producing a product that constitutes a large proportion of household income, and
3(a)(ii)[8]
a good idea for a firm producing a product that constitutes a small proportion of household income. For knowledge and understanding, meaning of PED (1)
plus an accurate formula (1)
(up to 2 marks) And application: For explanation of the effects on revenue where PED is elastic (i). For a product that constitutes a large proportion of household income this means that the PED will most likely be elastic (1)
which means (1)
so revenue is likely to fall (1)
(up to 3 marks) For explanation of the effects on revenue where PED is inelastic (ii). For a product that constitutes a small proportion of household income this means that the PED is likely to be inelastic (1)
which means (1)
so revenue is likely to rise (1)
(up to 3 marks) Where PED is elastic, an increase in price will lead to less revenue A firm with an inelastic PED will experience an increase in its revenue if it increases the price of its product Note: simple explanations of the impact of elasticity should not be credited, e.g. an increase in price leads to a large fall in demand/no change in demand. The answer must refer to % or proportional changes
3(b)[12]
Question 4
4(a)[8]
4(b)[12]