February/March 2026 Paper 12

2026 · 30 questions · 30 parts · 30 marks

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13Price ControlsMedium1 mark
The diagram shows a market where a government has set a minimum price of OM.
Diagram, a market with price on the vertical axis and quantity on the horizontal axis. An upward-sloping supply curve S and a downward-sloping demand curve D cross at the free-market price P. A government-set minimum price is drawn as a dashed horizontal line at M, above P, labelled "minimum price"; at M the supply curve lies to the right of the demand curve.
What can be concluded from the diagram?