Economics (AS & A Level) · May / June 2022 · Paper 11 · Question 11
9708The interaction of demand and supply
When will the price mechanism not function as a system for allocating goods?
- Awhen the government bans advertising
- Bwhen the government maintains an effective maximum price
- Cwhen there is a limited supply of the good
- Dwhen there is a powerful company able to set the market price
As printed in the paper
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Correct answer: B. when the government maintains an effective maximum price
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