WASSCE Economics · Paper 1 style

Price control

One sample question with the full working. 1 more in the app, with instant feedback and repair sessions for the traps below.

If the government fixes the maximum price of rice below the equilibrium price, the most likely result is

Aan increase in the supply of rice
Ba shortage of rice and black-market activity
Cno effect on the market
Da surplus of rice

Show the answer and working

Answer: B

At a price below equilibrium, quantity demanded exceeds quantity supplied.

Trap A Reverses the direction of the effect: Trace the chain step by step (e.g. buying securities → banks gain cash → money supply rises) and check the sign at every link.

Trap C Over-generalises a rule: Economic laws hold 'other things being equal' and within limits. Be suspicious of options with always/never/all.

Trap D Applies the rule for the opposite case: Before answering, name the case in the stem (inelastic? price floor ABOVE equilibrium? point INSIDE the PPC?) and recall the rule for that case only.

Traps in Price control

Reverses the direction of the effect
Trace the chain step by step (e.g. buying securities → banks gain cash → money supply rises) and check the sign at every link.
Over-generalises a rule
Economic laws hold 'other things being equal' and within limits. Be suspicious of options with always/never/all.
Applies the rule for the opposite case
Before answering, name the case in the stem (inelastic? price floor ABOVE equilibrium? point INSIDE the PPC?) and recall the rule for that case only.

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