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

Maximum and minimum prices — practice question

Which row indicates the effect of the maximum and minimum prices named in the table headings?

  • Amaximum price above equilibrium price: excess demand; maximum price below equilibrium price: no effect; minimum price above equilibrium price: no effect
  • Bmaximum price above equilibrium price: excess supply; maximum price below equilibrium price: no effect; minimum price above equilibrium price: no effect
  • Cmaximum price above equilibrium price: no effect; maximum price below equilibrium price: excess demand; minimum price above equilibrium price: excess supply
  • Dmaximum price above equilibrium price: no effect; maximum price below equilibrium price: excess supply; minimum price above equilibrium price: excess demand

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