A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2018 · Q141 Mark
The government fixes a maximum price for wheat flour below the market equilibrium price. After the maximum price is imposed, which statement is not correct?
AProducers' revenue is increased.
BSome consumers may encourage illegal sales.
CThe quantity supplied of flour will decrease.
DThere will be an excess demand for flour.
✓ Correct answer
A: Producers' revenue is increased.
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