Economics (AS & A Level) · May / June 2022 · Paper 13 · Question 17
9708Methods and effects of government intervention in markets
A government imposes a maximum price on medical face masks, below the market equilibrium. What is the most likely effect of this?
- ASome consumers will be unable to buy face masks at the maximum price.
- BFirms will produce more masks to meet the excess demand at the maximum price.
- CPoorer consumers will be able to obtain all the masks they need at the maximum price.
- DThe market will clear at the maximum price.
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Correct answer: A. Some consumers will be unable to buy face masks at the maximum price.
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