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Economics (AS & A Level) · Feb / March 2022 · Paper 12 · Question 15

9708Methods and effects of government intervention in markets

What are the effects of a government imposing a maximum price below the equilibrium price?

  1. Ademand falls, supply falls
  2. Bdemand falls, supply rises
  3. Cdemand rises, supply falls
  4. Ddemand rises, supply rises

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Correct answer: C. demand rises, supply falls

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