A-LevelEconomicsGovernment InterventionOct/Nov 2022Paper 1 Q151 Mark
A government fixes a maximum price for a product in order to increase its consumption. What would be the likely outcome of such a policy?
AConsumption will fall if the maximum price is above the current equilibrium price.
BConsumption will rise if the maximum price is below the current equilibrium price.
CProduction will fall if the maximum price is above the current equilibrium price.
DProduction will fall if the maximum price is below the current equilibrium price.
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of government intervention within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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