Economics · May / June 2026 · Paper 12 · Question 9
The diagram shows the market for an essential medicine. The government has intervened to decrease the maximum price of the medicine from P1 to P2. [diagram: price on vertical axis, quantity on horizontal axis, demand curve D downward sloping, supply curve S upward sloping, price levels P1 and P2 marked with dashed lines] What is the impact of the decrease in maximum price on the market for this medicine?
- Aa decrease in excess demand
- Ba decrease in quantity demanded
- Can increase in quantity demanded
- Dan increase in excess supply
As printed in the paper
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Correct answer: C. an increase in quantity demanded
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