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

Maximum and minimum prices — practice question

A government sets a floor price for a service. What result will this policy produce?

  • ADemand will fall if the minimum price is below the equilibrium price.
  • BDemand will rise if the minimum price is above the equilibrium price.
  • CProduction will fall if the minimum price is above the equilibrium price.
  • DProduction will stay the same if the minimum price is below the equilibrium price.

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