A market is in equilibrium.

CIMA BA1 Question Answer

A market is in equilibrium. If the government imposes a minimum price above the equilibrium price, there will be:

an extension in demand, a contraction in supply and a market shortage

a decrease in demand, an extension in supply and a market surplus

a contraction in demand, an increase in supply and a market surplus

a contraction in demand, an extension in supply and market surplus

BA1 PDF/Engine

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