Pearson Edexcel International Advanced Level
Friday 9 January 2026
WEC11/01A
Paper
Afternoon (Time: 1 hour 45 minutes)
reference
Economics
International Advanced Subsidiary Mark Scheme
UNIT 1: Markets in action
Question Paper
(Results)
You must have:
Source Booklet and Answer book (sent separately)
January 2026
Do not return this Question Paper with the Answer Book.
Pearson Edexcel in International A Level in Economics
WEC11/01A
Turn over
P87654APearson Education Ltd.
C:1/1/1/1/1/1/1/
*P87654A*
, Edexcel and BTEC Qualifications
SECTION A
Answer ALL questions in this section in the Answer Book.
1 Which one of the following is a function of the price mechanism? Edexcel and BTEC qualifications are awarded by Pearson, the UK’s
largest awarding body. We provide a wide range of qualifications
including academic, vocational, occupational and specific
A An increase in the price of earbuds, caused by an increase in demand, will ration
programmes for employers. For further information visit our
them to those who are most able to pay
qualifications websites at or .
Alternatively, you can get in touch with us using the details on our
B A decrease in the price of broccoli, caused by excess supply, provides farmers contact us page at
with the incentive to increase supply
C A decrease in the price of tinned tuna is a signal to producers that demand for it
is increasing
D An increase in the price of diesel is a signal to the government to impose a Pearson: helping people progress, everywhere
maximum price
Pearson aspires to be the world’s leading learning company. Our aim is to help
(Total for Question 1 = 1 mark) everyone progress in their lives through education. We believe in every kind of
learning, for all kinds of people, wherever they are in the world. We’ve been involved
2 A footwear manufacturer originally organised production so that each worker made a in education for over 150 years, and by working across 70 countries, in 100
pair of shoes from start to finish. However, in 2024, the manufacturer introduced the languages, we have built an international reputation for our commitment to high
division of labour to shoe production.
standards and raising achievement through innovation in education. Find out more
Which one of the following is a likely advantage of introducing the division of labour? about how we can help you and your students at:
A An increase in worker boredom
B An increase in the cost of making each pair of shoes
C An increase in output per worker
D An increase in the time required for training
(Total for Question 2 = 1 mark)
January 2026
Question Paper Log Number P87654A
Publication Code WEC11_01A_2601_MS
All the material in this publication is
Pearson Education Ltd
2 P87654A
, General Marking Guidance
3 The table shows the estimated income elasticity of demand for four items.
● All candidates must receive the same treatment. Examiners must mark the first
Product Income elasticity of demand candidate in exactly the same way as they mark the last.
● Mark schemes should be applied positively. Candidates must be rewarded for
Fish +1.04
what they have shown they can do rather than penalised for omissions.
Fruits +1.22 ● Examiners should mark according to the mark scheme not according to their
perception of where the grade boundaries may lie.
Meat +1.20
● There is no ceiling on achievement. All marks on the mark scheme should be used
Vegetables +0.79 appropriately.
● All the marks on the mark scheme are designed to be awarded. Examiners
Which one of the following can be deduced from the table?
should always award full marks if deserved, i.e. if the answer matches the mark
A Fish is an inferior good scheme. Examiners should also be prepared to award zero marks if the
candidate’s response is not worthy of credit according to the mark scheme.
B Demand for fruits is price elastic
● Where some judgement is required, mark schemes will provide the principles by
C Demand for meat is income elastic which marks will be awarded and exemplification may be limited.
D Vegetables are a luxury good ● When examiners are in doubt regarding the application of the mark scheme to a
(Total for Question 3 = 1 mark) candidate’s response, the team leader must be consulted.
● Crossed out work should be marked UNLESS the candidate has replaced it with
4 The diagram shows the market for weight loss injections. an alternative response.
Costs and G
benefits per MPC = MSC
injection
A
P2 B
P1 C
F E
MSB
MPB
0 Q1 Q2 Quantity of weight
loss injections
Which one of the following can be deduced from the diagram?
A The social optimum output is Q1
B The market equilibrium output is Q2
C Welfare gain is shown by the area BCE
D Welfare gain is shown by the area ABC
(Total for Question 4 = 1 mark)
P87654A 3
Turn over
, 5 The European Union (EU) has a tradeable permit scheme for carbon emissions. Section A
The price of a carbon permit was above €100 in 2023 and decreased to €70 in 2025. Question Quantitative skills assessed Answer Mark
1 QS9: Interpret, apply and The only correct answer is A
Which one of the following is the most likely reason for the decrease in the price of analyse information in (1)
carbon permits? written, graphical, tabular B is not correct because firms would
and numerical forms supply less if the price decrease
C is not correct because the price
A The EU issued too many carbon permits in 2023 decrease would be caused by lower
demand
B The EU issued too few carbon permits in 2025 D is not correct because government
intervention is not a function of the
C The demand for carbon permits decreased between 2023 and 2025 price mechanism
2 QS9: Interpret, apply and The only correct answer is C
D The supply of carbon permits was decreased between 2023 and 2025
analyse information in (1)
written, graphical, tabular A is not correct because increased
(Total for Question 5 = 1 mark)
and numerical forms boredom is a disadvantage
B is not correct because costs to
6 The table shows the total utility received by a consumer from consuming bowls make each pair of shoes are likely to
of cereal. decrease
D is not correct because less time
will be required for training as they
Bowls of cereal Total utility focus on fewer tasks within the
production process
3 QS8: Make calculations of The only correct answer is C
elasticity and interpret the (1)
result A is not correct because inferior
QS9: Interpret, apply and goods have negative income
analyse information in elasticity
written, graphical, tabular B is not correct because
and numerical forms there is no information on the price
elasticity of demand
D is not correct because luxury
goods have an income elasticity of
demand above 1.
4 QS4: Construct and The only correct answer is D
interpret a range of (1)
standard graphical forms A is not correct because Q1 is the
QS9: Interpret, apply and market equilibrium output
Which one of the following can be deduced from the table? analyse information in B is not correct because Q2 is the
written, graphical, tabular social optimum output
and numerical forms C is not correct because the welfare
A Utility is maximised when three bowls of cereal are consumed gain triangle sits above the supply
line not below.
B D
iminishing marginal utility sets in with the consumption of the fourth bowl
of cereal
C Diminishing marginal utility sets in with the consumption of the fifth bowl
of cereal
D Utility is maximised when six bowls of cereal are consumed
(Total for Question 6 = 1 mark)
TOTAL FOR SECTION A = 6 MARKS
4 P87654A
Friday 9 January 2026
WEC11/01A
Paper
Afternoon (Time: 1 hour 45 minutes)
reference
Economics
International Advanced Subsidiary Mark Scheme
UNIT 1: Markets in action
Question Paper
(Results)
You must have:
Source Booklet and Answer book (sent separately)
January 2026
Do not return this Question Paper with the Answer Book.
Pearson Edexcel in International A Level in Economics
WEC11/01A
Turn over
P87654APearson Education Ltd.
C:1/1/1/1/1/1/1/
*P87654A*
, Edexcel and BTEC Qualifications
SECTION A
Answer ALL questions in this section in the Answer Book.
1 Which one of the following is a function of the price mechanism? Edexcel and BTEC qualifications are awarded by Pearson, the UK’s
largest awarding body. We provide a wide range of qualifications
including academic, vocational, occupational and specific
A An increase in the price of earbuds, caused by an increase in demand, will ration
programmes for employers. For further information visit our
them to those who are most able to pay
qualifications websites at or .
Alternatively, you can get in touch with us using the details on our
B A decrease in the price of broccoli, caused by excess supply, provides farmers contact us page at
with the incentive to increase supply
C A decrease in the price of tinned tuna is a signal to producers that demand for it
is increasing
D An increase in the price of diesel is a signal to the government to impose a Pearson: helping people progress, everywhere
maximum price
Pearson aspires to be the world’s leading learning company. Our aim is to help
(Total for Question 1 = 1 mark) everyone progress in their lives through education. We believe in every kind of
learning, for all kinds of people, wherever they are in the world. We’ve been involved
2 A footwear manufacturer originally organised production so that each worker made a in education for over 150 years, and by working across 70 countries, in 100
pair of shoes from start to finish. However, in 2024, the manufacturer introduced the languages, we have built an international reputation for our commitment to high
division of labour to shoe production.
standards and raising achievement through innovation in education. Find out more
Which one of the following is a likely advantage of introducing the division of labour? about how we can help you and your students at:
A An increase in worker boredom
B An increase in the cost of making each pair of shoes
C An increase in output per worker
D An increase in the time required for training
(Total for Question 2 = 1 mark)
January 2026
Question Paper Log Number P87654A
Publication Code WEC11_01A_2601_MS
All the material in this publication is
Pearson Education Ltd
2 P87654A
, General Marking Guidance
3 The table shows the estimated income elasticity of demand for four items.
● All candidates must receive the same treatment. Examiners must mark the first
Product Income elasticity of demand candidate in exactly the same way as they mark the last.
● Mark schemes should be applied positively. Candidates must be rewarded for
Fish +1.04
what they have shown they can do rather than penalised for omissions.
Fruits +1.22 ● Examiners should mark according to the mark scheme not according to their
perception of where the grade boundaries may lie.
Meat +1.20
● There is no ceiling on achievement. All marks on the mark scheme should be used
Vegetables +0.79 appropriately.
● All the marks on the mark scheme are designed to be awarded. Examiners
Which one of the following can be deduced from the table?
should always award full marks if deserved, i.e. if the answer matches the mark
A Fish is an inferior good scheme. Examiners should also be prepared to award zero marks if the
candidate’s response is not worthy of credit according to the mark scheme.
B Demand for fruits is price elastic
● Where some judgement is required, mark schemes will provide the principles by
C Demand for meat is income elastic which marks will be awarded and exemplification may be limited.
D Vegetables are a luxury good ● When examiners are in doubt regarding the application of the mark scheme to a
(Total for Question 3 = 1 mark) candidate’s response, the team leader must be consulted.
● Crossed out work should be marked UNLESS the candidate has replaced it with
4 The diagram shows the market for weight loss injections. an alternative response.
Costs and G
benefits per MPC = MSC
injection
A
P2 B
P1 C
F E
MSB
MPB
0 Q1 Q2 Quantity of weight
loss injections
Which one of the following can be deduced from the diagram?
A The social optimum output is Q1
B The market equilibrium output is Q2
C Welfare gain is shown by the area BCE
D Welfare gain is shown by the area ABC
(Total for Question 4 = 1 mark)
P87654A 3
Turn over
, 5 The European Union (EU) has a tradeable permit scheme for carbon emissions. Section A
The price of a carbon permit was above €100 in 2023 and decreased to €70 in 2025. Question Quantitative skills assessed Answer Mark
1 QS9: Interpret, apply and The only correct answer is A
Which one of the following is the most likely reason for the decrease in the price of analyse information in (1)
carbon permits? written, graphical, tabular B is not correct because firms would
and numerical forms supply less if the price decrease
C is not correct because the price
A The EU issued too many carbon permits in 2023 decrease would be caused by lower
demand
B The EU issued too few carbon permits in 2025 D is not correct because government
intervention is not a function of the
C The demand for carbon permits decreased between 2023 and 2025 price mechanism
2 QS9: Interpret, apply and The only correct answer is C
D The supply of carbon permits was decreased between 2023 and 2025
analyse information in (1)
written, graphical, tabular A is not correct because increased
(Total for Question 5 = 1 mark)
and numerical forms boredom is a disadvantage
B is not correct because costs to
6 The table shows the total utility received by a consumer from consuming bowls make each pair of shoes are likely to
of cereal. decrease
D is not correct because less time
will be required for training as they
Bowls of cereal Total utility focus on fewer tasks within the
production process
3 QS8: Make calculations of The only correct answer is C
elasticity and interpret the (1)
result A is not correct because inferior
QS9: Interpret, apply and goods have negative income
analyse information in elasticity
written, graphical, tabular B is not correct because
and numerical forms there is no information on the price
elasticity of demand
D is not correct because luxury
goods have an income elasticity of
demand above 1.
4 QS4: Construct and The only correct answer is D
interpret a range of (1)
standard graphical forms A is not correct because Q1 is the
QS9: Interpret, apply and market equilibrium output
Which one of the following can be deduced from the table? analyse information in B is not correct because Q2 is the
written, graphical, tabular social optimum output
and numerical forms C is not correct because the welfare
A Utility is maximised when three bowls of cereal are consumed gain triangle sits above the supply
line not below.
B D
iminishing marginal utility sets in with the consumption of the fourth bowl
of cereal
C Diminishing marginal utility sets in with the consumption of the fifth bowl
of cereal
D Utility is maximised when six bowls of cereal are consumed
(Total for Question 6 = 1 mark)
TOTAL FOR SECTION A = 6 MARKS
4 P87654A
