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

Maximum and minimum prices — practice question

In what circumstances would it not be possible to use price as a rationing mechanism?

  • Awhen a good has a number of close substitutes
  • Bwhen a good is an inferior good
  • Cwhen the demand for a good is infinitely inelastic
  • Dwhen the quantity of a good is in fixed supply

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