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

Maximum and minimum prices — practice question

A government intends to step into a free market and set output at the level that maximises society’s economic welfare. To meet this aim, what should the government put in place?

  • Aa subsidy of TS
  • Ba subsidy of YX
  • Ca tax of TS
  • Da tax of YX

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI