Economics (AS & A Level) · May / June 2022 · Paper 12 · Question 15

The demand and supply functions for a product are quantity demanded = 1500 + 50P and quantity supplied = 300P – 2000 where P = price. With government regulation, the current price in the market is $15. What can be concluded about the form of price regulation and the balance of demand and supply in the market?

1. Aeffective maximum price; excess demand
2. Beffective maximum price; excess supply
3. Ceffective minimum price; excess demand
4. Deffective minimum price; excess supply

As printed in the paper