A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2011 · Q181 Mark
The diagram shows the market demand and supply curves for rice. [Figure showing supply S and demand D curves, prices $8, $10, quantities Q1, Q2, Q3] 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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