A government sets a maximum price of $P_2$ for rice. What effect does this have?
- AGovernment spending will increase.
- BThe price of rice will be unchanged.
- CThere will be a shortage of rice.
- DThere will be a surplus of rice.
Economics 9708 · AS & A Level · Maximum and minimum prices
A government sets a maximum price of $P_2$ for rice. What effect does this have?