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

Maximum and minimum prices — practice question

(a)[2]

Identify two examples of ‘soft’ infrastructure referred to in the article.

(b)[6]

Explain, with the help of a diagram, the effect on consumers of fixing the maximum selling price for the electricity distributed by the state-owned monopoly.

(c)[5]

Explain the effects on Indonesian firms of the problems identified in the transport of goods.

(d)[7]

Discuss the likely impact on Indonesia’s GDP of an improvement in its infrastructure.

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