Economics (AS & A Level) · Oct / Nov 2023 · Paper 11 · Question 10

In the diagram, the supply curve shows the number of spaces in a car park and the demand curves show the demand for spaces on four different days, D1, D2, D3 and D4. The owner wishes to charge a parking fee on each of these days to allocate the spaces according to the market mechanism. Which pricing policy should the owner use?

1. Aset a fixed price at P1
2. Bset a fixed price at P4
3. Cvary prices between P2 and P3
4. Dvary prices between P1 and P4

As printed in the paper