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'.
16 exam-style questions on Edexcel A A Level Economics 1.4.1 Government intervention in markets. Each one has a worked solution and a mark scheme showing where the marks go.