A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2010 · Q171 Mark
The diagram shows the demand and supply curves of a good. The government sets a maximum price of OJ for the good. How will this affect the consumers and producers of the good?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
AAll consumers will gain.; Producers will lose.
BAll consumers will gain.; Producers will gain.
CSome consumers will gain and some will lose.; Producers will gain.
DSome consumers will gain and some will lose.; Producers will lose.
✓ Correct answer
D: Some consumers will gain and some will lose.; Producers will lose.
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