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

Maximum and minimum prices — practice question

A government chooses to abolish fees for higher education in both the public sector and the private sector. What will be the result of this policy?

  • AHigher education is less likely to be provided by the private sector.
  • BResources in higher education will be allocated through the price mechanism.
  • CThe demand for higher education will be perfectly elastic when the price is zero.
  • DThe opportunity cost of higher education to students will be zero.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI