Exam-style question
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Which answer best protects the boundary tested by elasticity? Variation 2: Explain AQA section 3.1.3.4 Price elasticity of supply.
- A.Distinguish elasticity from the nearest misconception, then use price, quantity, incentives or welfare to explain the economic consequence.
- B.Price elasticity of demand is the same as income elasticity of demand.
- C.Elasticity only matters to firms and has no welfare effect.
- D.Give a definition of elasticity only, without application, chain of analysis, evaluation or judgement.
Model answer
What a good answer should say
- 3.1.3.4 Price Elasticity of Supply.
- MCQ 2: The correct answer is Distinguish elasticity from the nearest misconception, then use price, quantity, incentives or welfare to explain the economic consequence...
- This choice fits the microeconomic market analysis required by the learning objective.
Explanation
Why this works
is tested here through the prompt: "Which answer best protects the boundary tested by elasticity? Variation 2: Explain AQA section 3.1.3.4 Price".
The correct option is "The correct answer is Distinguish elasticity from the nearest misconception, then use price, quantity, incentives or welfare to explain the economic consequence.." because it keeps the answer anchored to Price Elasticity of Supply. rather than a nearby misconception.
The reasoning chain is: define the concept, apply it to Individuals, firms, markets and market failure, identify the economic mechanism, and check the consequence against consumer surplus, producer incentives, efficiency and equity. A tempting distractor usually confuses a change in demand with quantity demanded, analysis with evaluation, or a short-run effect with a long-run judgement.
For AQA Economics 7136, the best choice is the one that preserves the cause, transmission mechanism and consequence without adding an unsupported policy claim.
Common mistake
No common mistake is linked to this question yet.