A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2014 · Q181 Mark
The government imposes a maximum price of P₂ on a product. What will be the position after this action?
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Aan equilibrium with price P₁ and quantity Q₁
Ban equilibrium with price P₂ and a quantity between Q₂ and Q₃
Can oversupply in the market by Q₂Q₃
Dshortage in the market of Q₂Q₃
✓ Correct answer
A: an equilibrium with price P₁ and quantity Q₁
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