Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

Recent research has indicated that eating some foods may be harmful. A government committee is considering how to intervene in markets. Which intervention is most likely to cut consumption of these foods without lowering income equality?

  • Aa minimum price for the harmful foods
  • Ba subsidy for substitute foods
  • Can ad valorem tax on the harmful foods
  • Dan indirect tax on the harmful foods

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI