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

Maximum and minimum prices — practice question

(a)[4]
  • Use the information in Fig. 1.1 to describe how the number of bus journeys in Great Britain changed from 1997/98 to 2017/18. [2]
  • Using the information in Fig. 1.2, explain one change that you have identified. [2]
(b)[2]

Explain how opportunity cost may be applied to the Great British government’s decision to subsidise public transport.

(c)[2]

Explain whether public transport in Luxembourg has become a free good now that all prices have been removed.

(d)[6]

Discuss whether a minimum price for fuel would be effective in reducing congestion when demand for roads exceeds supply.

(e)[6]

Discuss whether making public transport free to consumers is the best way to allocate resources in public transport markets.

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