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

Maximum and minimum prices — practice question

A government sought to raise car sales by offering consumers $3000 if they scrapped any car more than 10 years old and bought a new one. How would this be represented on a demand and supply diagram for new cars?

  • AThe demand curve would move to the left.
  • BThe demand curve would move to the right.
  • CThere would be a shift along the demand curve to the left.
  • DThere would be a shift along the demand curve to the right.

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