Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 17
9708Methods and effects of government intervention in markets
The market for good X is in equilibrium. A government then introduces an effective minimum price on good X. What will decrease as a result of this minimum price?
- Athe excess supply of the product
- Bthe market price of the product
- Cthe quantity of the product supplied
- Dthe size of the consumer surplus
As printed in the paper
Show the answer
Correct answer: D. the size of the consumer surplus
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.