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

Maximum and minimum prices — practice question

Which pair of government measures is most likely to raise the consumption of a merit good?

  • Asetting an effective maximum price on the product and paying producers a subsidy
  • Bsetting an effective maximum price on the product and imposing an indirect tax on producers
  • Csetting an effective minimum price on the product and paying producers a subsidy
  • Dsetting an effective minimum price on the product and imposing an indirect tax on producers

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