A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2011 · Q111 Mark
The diagram shows the demand and supply curves for a good. The government fixed a maximum price of OP₁. What would this have achieved?
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.
Athe guarantee of supplies of OQ2
Bthe market equilibrium of quantity OQ
Cthe need for a government subsidy of PP1
Dthe rationing of the product for consumers to OQ1
✓ Correct answer
B: the market equilibrium of quantity OQ
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