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

Maximum and minimum prices — practice question

(a)[8]

With the help of a diagram, explain the impact of introducing an effective minimum price for a product and consider how consumer surplus for that product is affected.

(b)[12]

Assess whether a minimum wage policy is the best way to redistribute income in an economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: AO1: A correctly drawn supply and demand diagram.

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