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

Maximum and minimum prices — practice question

The diagram illustrates the market for CDs. The government increases the minimum price of CDs from $12 to $14. What is the result?

  • AExcess demand increases by 2 units.
  • BExcess demand increases by 4 units.
  • CExcess supply decreases by 2 units.
  • DExcess supply increases by 2 units.

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