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

Maximum and minimum prices — practice question

A town council made estimates of the costs and benefits of running a bus service in 2010 and 2011. These are shown in the table. What conclusion can be drawn from the table?

  • ABetween 2010 and 2011, social costs fell and social benefits rose.
  • BBetween 2010 and 2011, social costs rose and social benefits fell.
  • CIn both years, positive externalities exceeded negative externalities.
  • DIn both years, social costs equalled social benefits.

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