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

Maximum and minimum prices — practice question

(a)[2]

Using Table 1, calculate the percentage change in rice price between 2014 and 2015.

(b)[3]

Explain how rice farmers in Japan gain from subsidies on fertilisers, power and water. Use a diagram to support your answer.

(c)[5]

Explain how minimum prices will safeguard the interests of rice farmers. Consider whether the minimum price can be maintained in the long run.

(d)[4]

Explain how the principle of comparative advantage may be used to justify Thailand and Vietnam specialising in rice production, while Japan specialises in another product.

(e)[6]

Discuss the advantages and disadvantages of rice-importing countries removing their controls on the rice market. Consider whether, overall, the controls should be kept.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: The rice price decreased

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