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

Maximum and minimum prices — practice question

The diagram illustrates a market that is presently in equilibrium. A government is thinking about the possible effects of introducing a price control in this market. Which statement is incorrect?

  • AAll consumers and some producers will lose if OP1 becomes the minimum price.
  • BAll consumers will be unaffected if OP1 becomes the maximum price.
  • CNo producers will gain if OP2 becomes the maximum price.
  • DAll producers will gain if OP3 becomes the maximum price.

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