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

Maximum and minimum prices — practice question

In the diagram, S and S1 show the supply curves for an agricultural product in years 1 and 2, respectively. D is the demand curve for both years 1 and 2. During year 1, the government bought the quantity needed to keep the price at OP. The price remains fixed at OP in year 2. By how much does the government need to buy more in year 2 than it did in year 1?

  • AWZ
  • BXY
  • CXZ
  • DYZ

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