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

Maximum and minimum prices — practice question

The diagram presents the demand and supply curves for a good. The government set a maximum price of OP1. What would this have achieved?

  • Athe guarantee of supplies of OQ2
  • Bthe market equilibrium of quantity OQ
  • Cthe need for a government subsidy of PP1
  • Dthe rationing of the product for consumers to OQ1

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