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

Maximum and minimum prices — practice question

A government sets a ceiling price for a product so that more of it is consumed. What is the most likely result of this policy?

  • AConsumption will fall if the maximum price is above the current equilibrium price.
  • BConsumption will rise if the maximum price is below the current equilibrium price.
  • CProduction will fall if the maximum price is above the current equilibrium price.
  • DProduction will fall if the maximum price is below the current equilibrium price.

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