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A-Level Economics · Minimum price diagram question

A minimum price of £7 is imposed (think alcohol floor price). Which point shows the quantity actually TRADED?

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The diagram

The answer

Point F. Short side again — this time DEMAND is short: buyers only take 3 at £7 (point F). At £7 sellers would love to sell 7 (point G), but buyers only buy 3 (point F). Trade = the short side — this time demand is the constraint.

Test yourself properly

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

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