Economics (AS & A Level) · Oct / Nov 2023 · Paper 13 · Question 14
9708The interaction of demand and supply
A free market is currently experiencing excess supply at a price of P1. What will be the effect on the current market situation if a maximum price is set above P1?
- AThe excess supply will increase.
- BThe market will move into an equilibrium position.
- CThere will be no effect.
- DThere will be excess demand.
As printed in the paper
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Correct answer: C. There will be no effect.
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