Economics (AS & A Level) · May / June 2026 · Paper 13 · Question 15
9708Methods and effects of government intervention in markets
A government imposes a maximum price on a new vaccine below the market equilibrium price. What will happen in the market as a result of this government intervention?
- Acompanies will produce more new vaccines to meet the demand at the maximum price
- Bdemand of the new vaccine will decrease at the maximum price
- Csome consumers will be unable to buy the new vaccine at the maximum price
- Dthe market will clear at the maximum price
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Correct answer: C. some consumers will be unable to buy the new vaccine at the maximum price
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