AQA
A-level Economics
Paper 1: Markets and Market Failure
Monday 12 May 2025 Morning Time allowed: 2 hours
Student Details
Name: ________________________
Candidate Number: _____________
Centre Number: ________________
Materials
For this paper you must have:
an AQA 12-page answer book
a calculator
Instructions
Use black ink or black ball-point pen. Pencil should only be used for drawing.
Write the information required on the front cover of your answer book.
The Paper Reference is 7136/1.
In Section A, answer EITHER Context 1 OR Context 2.
In Section B, answer ONE essay.
Information
The marks for questions are shown in brackets.
The maximum mark for this paper is 80.
There are 40 marks for Section A, 40 marks for Section B
, Advice
You are advised to spend 1 hour on Section A, 1 hour on Section B,
Section A
Answer EITHER Context 1 OR Context 2
Context 1: The International Rice Market
Rice is a staple food for more than half of the world’s population. Prices vary between countries due to
differences in production costs, government intervention, and levels of demand. Some governments
subsidise domestic producers to protect farmer incomes, while others impose export bans to keep
domestic food prices low.
Table 1: Average Rice Prices (2024)
Country Average Price (US$ per tonne)
India 420
Thailand 460
Vietnam 445
United States 510
Nigeria 560
Questions – Context 1
1(a) Using Table 1, calculate the percentage difference between the price of rice in India and Nigeria. [3]
1(b) Define the term price elasticity of demand. [2]
1(c) Explain one factor that may cause rice prices to be higher in Nigeria than in India. [4]
1(d) Analyse one reason why the free market may fail to allocate rice efficiently. [9]
1(e) Evaluate whether government intervention in rice markets is always beneficial for consumers. [17]
Context 2: Minimum Prices in Agricultural Markets
A-level Economics
Paper 1: Markets and Market Failure
Monday 12 May 2025 Morning Time allowed: 2 hours
Student Details
Name: ________________________
Candidate Number: _____________
Centre Number: ________________
Materials
For this paper you must have:
an AQA 12-page answer book
a calculator
Instructions
Use black ink or black ball-point pen. Pencil should only be used for drawing.
Write the information required on the front cover of your answer book.
The Paper Reference is 7136/1.
In Section A, answer EITHER Context 1 OR Context 2.
In Section B, answer ONE essay.
Information
The marks for questions are shown in brackets.
The maximum mark for this paper is 80.
There are 40 marks for Section A, 40 marks for Section B
, Advice
You are advised to spend 1 hour on Section A, 1 hour on Section B,
Section A
Answer EITHER Context 1 OR Context 2
Context 1: The International Rice Market
Rice is a staple food for more than half of the world’s population. Prices vary between countries due to
differences in production costs, government intervention, and levels of demand. Some governments
subsidise domestic producers to protect farmer incomes, while others impose export bans to keep
domestic food prices low.
Table 1: Average Rice Prices (2024)
Country Average Price (US$ per tonne)
India 420
Thailand 460
Vietnam 445
United States 510
Nigeria 560
Questions – Context 1
1(a) Using Table 1, calculate the percentage difference between the price of rice in India and Nigeria. [3]
1(b) Define the term price elasticity of demand. [2]
1(c) Explain one factor that may cause rice prices to be higher in Nigeria than in India. [4]
1(d) Analyse one reason why the free market may fail to allocate rice efficiently. [9]
1(e) Evaluate whether government intervention in rice markets is always beneficial for consumers. [17]
Context 2: Minimum Prices in Agricultural Markets
