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

Maximum and minimum prices — practice question

In the diagram, S1 and S2 represent the supply curves for an agricultural product in years 1 and 2, respectively. D is the demand curve for 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. How much extra must the government purchase in year 2 compared with year 1?

  • AWZ
  • BXY
  • CXZ
  • DYZ

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