Economics 9708 · AS & A Level · Government intervention in markets

Government intervention in markets — practice question

In what situation will it be necessary to use an alternative to the price mechanism to allocate a good between consumers?

  • ASupply exceeds the quantity demanded at the initial market price.
  • BThe government sets a price ceiling below the equilibrium price.
  • CThe product is excludable and rival.
  • DThere is a single monopoly producer.

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