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Economics (AS & A Level) · May / June 2025 · Paper 13 · Question 12

9708Methods and effects of government intervention in markets

Which statement about maximum and minimum prices is correct?

  1. AWith an effective maximum price for a product, a shortage will develop.
  2. BWith an effective maximum price for a product, the market price will rise.
  3. CWith an effective minimum price for a product, rationing will be necessary.
  4. DWith an effective minimum price for a product, the market price will fall.

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Correct answer: A. With an effective maximum price for a product, a shortage will develop.

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