Cambridge IGCSE Economics

2.10.3aMaximum and minimum prices

Maximum and minimum prices in Cambridge IGCSE Economics: what the syllabus expects you to know, the learning objectives and how to practise.

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Learning objectives

What the syllabus expects you to be able to do.

2.10.3aDefine maximum and minimum prices in product markets, draw and interpret their diagrams and explain their advantages and disadvantages.

A sample question on this topic. Answer it, check it, then read the worked answer.

The table shows the daily market for bread in a fictional town.

Price per loaf (US$)	Quantity demanded (loaves per day)	Quantity supplied (loaves per day)
1	3,750	2,400
1.20	3,450	2,550
1.40	3,150	2,700
1.60	2,850	2,850
1.80	2,550	3,000
2	2,250	3,150

The government sets a maximum price of US$1.20 a loaf. What is the shortage?

Choose one answer

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