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1.4.1 Government intervention in markets

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Question 1

In response to surging wholesale energy costs, a government introduces an energy price cap to limit the unit rate that utility providers can charge households for electricity and gas. This intervention is designed to shield consumers from extreme cost-of-living pressures by preventing utility bills from rising past a certain threshold.

Define the term 'maximum price'.

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1.4.1 Government intervention in markets Questions

  1. A Level
  2. /Economics
  3. /1.4.1 Government intervention in markets