1

Economics SL Paper 1 (November 2024, TZ2)

  1. (a) Explain why a decrease in the supply of a good would normally lead to an increase in its price, while an increase in the price of a good would normally lead to more of it being produced. [10]

(b) Using real‑world examples, evaluate the view that the fixing of maximum prices by governments will always have negative effects on markets and stakeholders. [15]