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A-Level Economics · Maximum price diagram question

A maximum price of £3 is imposed (e.g. a rent cap). Which point shows the quantity actually TRADED?

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The diagram

The answer

Point F. The SHORT side of the market wins: at £3 sellers only supply 3 (point F), so only 3 trades happen. At £3 buyers want 7 (point G) but sellers only offer 3 (point F). You can't buy what nobody sells — trade = the SHORT side = point F.

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This is one of 6 questions on the maximum price diagram — every corner lettered, every wrong answer diagnosed.

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