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

Maximum and minimum prices — practice question

The government sets a maximum price for wheat flour at a level below the market equilibrium price. Once the maximum price has been introduced, which statement is not correct?

  • AProducers’ revenue is increased.
  • BSome consumers may encourage illegal sales.
  • CThe quantity supplied of flour will decrease.
  • DThere will be an excess demand for flour.

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