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

Maximum and minimum prices — practice question

A government sets a ceiling price for medical face masks that is lower than the market equilibrium price. What is the most likely result of this?

  • ASome consumers will be unable to buy face masks at the maximum price.
  • BFirms will produce more masks to meet the excess demand at the maximum price.
  • CPoorer consumers will be able to obtain all the masks they need at the maximum price.
  • DThe market will clear at the maximum price.

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