Economics (AS & A Level) · May / June 2024 · Paper 13 · Question 12
9708Methods and effects of government intervention in markets
A government introduces an effective minimum price for a product but makes no other intervention in the market. This policy suggests that the government's objective is
- Ato discourage consumption of a demerit good.
- Bto increase the consumption of a merit good.
- Cto reduce the price of a private good.
- Dto support the incomes of producers.
As printed in the paper
Show the answer
Correct answer: A. to discourage consumption of a demerit good.
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.