Economics (AS & A Level) · Feb / March 2021 · Paper 12 · Question 14

After a series of poor harvests, a government imposes an effective maximum price on cereals. What would be a consequence of this policy?

1. ABoth rich and poor people would satisfy their demands equally.
2. BIllegal buying and selling through a black market would be prevented.
3. CRationing would be necessary to ensure a fair distribution of cereals.
4. DThe market would fail to clear leaving a surplus of cereals.

As printed in the paper