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

Maximum and minimum prices — practice question

The diagram shows a market for a good where the equilibrium price is OU. The government sets a maximum price of OV. What effect will this have on consumer surplus?

  • AIt decreases by area VXYU.
  • BIt increases by area WXV.
  • CIt increases by area XYZ.
  • DIt is not affected.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI