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1.3 Price determination in a competitive market

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Question 114

A government introduces a unit subsidy for manufacturers of low-emission heat pumps to encourage domestic energy transition. Consumers will experience the largest reduction in the price they pay for heat pumps if the price elasticity of demand (expressed as a positive value) is:

A

perfectly elastic.

B

greater than 1.

C

equal to 1.

D

less than 1.

Markscheme

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market

256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.

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