A-LevelEconomicsGovernment Intervention in MarketsOct/Nov 2009Paper 1 Q171 Mark
The government places a maximum price P₁ on an agricultural product. The supply and demand conditions for this product are shown. [Figure] What will be the outcome in the market for this product?
AThere will be an equilibrium price and output.
BThere will be a surplus of the product.
CThere will be higher than expected profits.
DThere will be shortages of this product.
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of government intervention in markets within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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