A-LevelEconomicsGovernment InterventionMay/June 2012Paper 1 Q181 Mark
The diagram shows the market for spectacles. Initially the market equilibrium price is P₀ and quantity Q₃ is bought and sold. [Figure 18.1] The government then sets both a maximum price of Px and a minimum price of PM. What effect will these measures have on the market for spectacles?
Acreate a shortage of spectacles equal to Q₁Q₅
Bcreate a surplus of spectacles equal to Q₂Q₄
Ccreate a surplus of spectacles equal to Q₃Q₄
Dleave the quantity bought and sold unchanged
✓ 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep