A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2019 · Q81 Mark
A government introduces a maximum price above the market price. What will be the effect on consumer and producer surplus?
Aconsumer surplus: fall, producer surplus: rise
Bconsumer surplus: rise, producer surplus: fall
Cconsumer surplus: rise, producer surplus: unchanged
Dconsumer surplus: unchanged, producer surplus: unchanged
✓ Correct answer
D: consumer surplus: unchanged, producer surplus: unchanged
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