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

Maximum and minimum prices — practice question

In the diagram, S and S1 show the supply curves for an agricultural product in years 1 and 2, respectively, while D shows the demand curve in years 1 and 2. During year 1, the government bought the quantity needed to keep the price at OP. The price remains fixed at OP in year 2. By how much more does the government need to buy in year 2 than it bought in year 1?

  • AWX
  • BXY
  • CXZ
  • DYZ

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