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

Maximum and minimum prices — practice question

Diesel engines are a significant source of air pollution in cities. A city authority introduced a charge for diesel taxis entering the city. What would be the most likely effects on the demand and supply of taxi journeys into the city?

  • Ademand for taxi journeys fall; supply of taxi journeys fall
  • Bdemand for taxi journeys fall; supply of taxi journeys remain unchanged
  • Cdemand for taxi journeys remain unchanged; supply of taxi journeys fall
  • Ddemand for taxi journeys rise; supply of taxi journeys fall

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