← A Level Economics Revision · All Maximum price questions · Home

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?

▶ Try it in the game first

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.

Test yourself properly

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

▶ Play the maximum price game All questions & answers

George Chantry
Professional A-Level Economics tutor · Oxford PPE First, 3 prizes in economics · 7,000+ hours one-to-one