Economics (AS & A Level) · May / June 2023 · Paper 11 · Question 13
9708The interaction of demand and supply
Demand for medical face masks exceeds supply during a disease outbreak. What is the most likely cause of this excess demand?
- ASome consumers do not have effective demand.
- BThe demand for medical face masks is price inelastic in the short run.
- CThe price of medical face masks is fixed below the equilibrium price.
- DThe supply of medical face masks is inelastic in the short run.
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Correct answer: C. The price of medical face masks is fixed below the equilibrium price.
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