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

Maximum and minimum prices — practice question

A government plans to set a minimum price for rice, a maximum price for heating oil and a tax on chewing gum. In each of these markets, which group is intended to gain from these policies?

  • Amarket for rice: consumers; market for heating oil: government; market for chewing gum: producers
  • Bmarket for rice: government; market for heating oil: producers; market for chewing gum: government
  • Cmarket for rice: producers; market for heating oil: producers; market for chewing gum: consumers
  • Dmarket for rice: producers; market for heating oil: consumers; market for chewing gum: government

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