A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2012 · Q131 Mark
In which situation will it be necessary to use an alternative to the price mechanism to allocate the good between consumers?
AProducers of the good receive a subsidy.
BThe government imposes a specific tax on the good.
CThe government sets a maximum price below the equilibrium price.
DThe quantity of the good available is fixed.
✓ Correct answer
C: The government sets a maximum price below the equilibrium price.
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