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

Maximum and minimum prices — practice question

(a)[8]

Using diagram(s), contrast the effect of a maximum price set below the equilibrium market price with one set above it.

(b)[12]

In view of the allocation problems that may result from effective maximum price legislation, discuss how these problems may be reduced.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Accurate diagram and explanation of the outcome when the maximum price is set below equilibrium.” …

Full mark scheme, point by point
Step-by-step worked solution
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