A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · May/June 2012 · Q131 Mark
The diagram shows the demand and supply curves for parking spaces in a hospital car park. [Figure 13.1] The managers decide to rely on the price mechanism to allocate parking spaces at the hospital. What is required for this to work?
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.
AAlternative means of transport must be provided for those unable to afford price OP.
Bsurvey will be needed to find out the amount users are willing to pay.
CThe capacity of the car park will need to be expanded.
DThe price charged for parking spaces must be OP.
✓ Correct answer
D: The price charged for parking spaces must be OP.
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