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

Maximum and minimum prices — practice question

An effective minimum price is imposed on alcohol in an attempt to cut consumption. Why might a government choose not to purchase any surplus that results?

  • ABuying the surplus would be costly to the government.
  • BBuying the surplus would decrease the incomes of producers.
  • CBuying the surplus would lead to a shortage.
  • DBuying the surplus would lead to unemployment.

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