Thursday, 25 February 2016

Cima C04 Exam Question No 44

Question No 44:

If the government imposes a maximum price for a good that is below the equilibrium price, the resulting market shortage will be greatest when:

A.
The demand is price elastic and the supply is price inelastic
B.
The demand is price elastic and the supply is price elastic
C.
The demand is price inelastic and the supply is price elastic
D.
The demand is price inelastic and the supply is price inelastic

Answer: B

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