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

Maximum and minimum prices — practice question

A government has imposed a maximum price on rice that is effective. Which combination of changes would lead to the largest increase in an existing shortage of rice?

  • Aa fall in the maximum price and a less price-elastic supply
  • Ba fall in the maximum price and a more price-elastic supply
  • Ca rise in the maximum price and a less price-elastic supply
  • Da rise in the maximum price and more price-elastic supply

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