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

Maximum and minimum prices — practice question

The diagram illustrates a market where a maximum price is imposed. What would occur if the maximum price were taken away?

  • AThere will be allocation by a queuing system.
  • BThere will be allocation by government rationing.
  • CThere will be allocation by seller’s preference.
  • DThere will be allocation by the price system.

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