Economics (AS & A Level) · May / June 2023 · Paper 12 · Question 16
9708Methods and effects of government intervention in markets
Which combination of government measures is most likely to increase the consumption of a merit good?
- Asetting an effective maximum price on the product and paying producers a subsidy
- Bsetting an effective maximum price on the product and imposing an indirect tax on producers
- Csetting an effective minimum price on the product and paying producers a subsidy
- Dsetting an effective minimum price on the product and imposing an indirect tax on producers
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Correct answer: A. setting an effective maximum price on the product and paying producers a subsidy
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