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

Maximum and minimum prices — practice question

The diagram illustrates the demand curve and supply curve for a good. The government imposes a maximum price of OJ for this good. What impact will this have on the consumers and producers of the good?

  • AAll consumers will gain. Producers will lose.
  • BAll consumers will gain. Producers will gain.
  • CSome consumers will gain and some will lose. Producers will gain.
  • DSome consumers will gain and some will lose. Producers will lose.

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