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

Maximum and minimum prices — practice question

A government sets a maximum price for house rentals (maxPh) and a minimum price for cleaning services (minPc). The demand and supply curves are the same in both markets. Which diagram indicates that the maximum price is effective while the minimum price is ineffective in the two markets respectively?

  • ADiagram A
  • B[IMAGE:9708_w12_qp_13_p8_diagram_4]
  • C[IMAGE:9708_w12_qp_13_p8_diagram_3]
  • D[IMAGE:9708_w12_qp_13_p8_diagram_2]

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