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

Maximum and minimum prices — practice question

The diagram shows S1S1 and DD as the original supply and demand curves for an agricultural product. Bad weather then lowers supply to S2S2. If the government aims to hold the price at OP1, how much of the product will it need to provide from stocks?

  • AOQ3
  • BQ1Q3
  • CQ1Q2
  • DQ2Q3

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