A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2016 · Q111 Mark
In the diagram, the supply curve shows the number of spaces in a car park and the demand curves show the demand for spaces on four different days (D1, D2, D3 and D4). [Figure X.X] The owner wishes to charge a parking fee on each of these days to allocate the spaces according to the market mechanism. Which pricing policy should the owner use?
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.
Aset a fixed price at P₁
Bset a fixed price at P4
Cvary prices between P2 and P3
Dvary prices between P₁ and P4
✓ Correct answer
D: vary prices between P₁ and P4
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