A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2020 · Q151 Mark
The diagram shows the market demand and supply curves for rice. [Figure 15.1] What would happen if a government imposed a maximum price of $10?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
AThe government would need to supply Q₁ to Q₃.
BThe quantity sold would be Q₁.
CThe quantity sold would be Q₂.
DThe quantity sold would increase from Q₂ to Q₃.
✓ Correct answer
C: The quantity sold would be Q₂.
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