Y1 20 Max price

Question 1

Max price effect in market

Answer 1

Price fall
Demand extension
Supply contraction
Excess demand creation
Producer revenue decrease
Deadweight loss creation

Question 2

Consumer pros

Answer 2

Those able to demand access greater consumer surplus

Question 3

Consumer cons

Answer 3

Black market, smuggling. long queues, long waiting lists

Question 4

Producer cons

Answer 4

Decrease in produce surplus and revenue

Question 5

Government pros

Answer 5

Key goods/ services more affordable

Question 6

Government cons

Answer 6

Producers leaving market decreases supply, excess demand, black market, subsidy may be necessary, deadweight loss