A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2023 · Q161 Mark
Which combination of government measures is most likely to increase the consumption of a merit good?
Asetting an effective maximum price on the product and paying producers a subsidy
Bsetting an effective maximum price on the product and imposing an indirect tax on producers
Csetting an effective minimum price on the product and paying producers a subsidy
Dsetting an effective minimum price on the product and imposing an indirect tax on producers
✓ Correct answer
A: setting an effective maximum price on the product and paying producers a subsidy
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