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

Maximum and minimum prices — practice question

The diagram illustrates the demand and supply curves for a good. If the government fixes a maximum price at OPM, what quantity will consumers purchase and what quantity will producers supply?

  • Aquantity bought by consumers OX; quantity supplied by producers OX
  • Bquantity bought by consumers OX; quantity supplied by producers OZ
  • Cquantity bought by consumers OY; quantity supplied by producers OY
  • Dquantity bought by consumers OY; quantity supplied by producers OZ

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