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

Maximum and minimum prices — practice question

(a)[3]

Describe China’s changing contribution to global REE production between 1950 and 2012.

(b)[8]
  • Explain two reasons why demand for REEs is expected to keep rising. [4]
  • Analyse the social costs linked with the increased mining of REEs. [4]
(c)[3]

What might be the economic justifications for China’s cut in export quotas for REEs?

(d)[6]

Discuss whether it is likely that China will be able to keep its dominance of the international REEs market at a time when global prices for REEs are rising.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Up to the mid-1980s, China did not supply REEs

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