Evaluate the view that imposing a maximum price for rice is the best way for a rice-importing nation, such as Nigeria, to ensure the affordability of a basic food for its citizens

AQA A-Level Economics Paper 1 June 2025 Insert

Using the data and your knowledge of economics, evaluate the view that imposing a maximum price for rice is the best way for a rice-importing nation, such as Nigeria, to ensure the affordability of a basic food for its citizens. (25 marks)

Plan

• Paragraph 1
  • Argument: on the one hand, a maximum price is the best way to ensure food like rice is more affordable because it guarantees a lower price
  • Diagram: maximum price diagram
  • Evaluation: on the other hand, maximum prices can lead to government failure (excess demand means the government have distorted the market)
• Paragraph 2
  • Argument: on the other hand, a subsidy is a better way to ensure affordability because it can lead to lower prices as well as an increase in quantity.
  • Diagram: subsidy diagram
  • Evaluation: on the other hand, subsidies have a large opportunity cost

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