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

Maximum and minimum prices — practice question

A government wants to increase farmers’ incomes without increasing the price of food for consumers. Which policy ought it to adopt?

  • Aa maximum price below the market price for food
  • Ba minimum price below the market price for food
  • Ca payment of a subsidy to farmers to produce food
  • Da release of government food stocks onto the market

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