Economics · May / June 2016 · Paper 12 · Question 15

By 2014, government subsidies for the Chinese steel industry led to 200 million tonnes of excess output. The diagrams show the market for Chinese steel. Which would represent the position after the subsidy but before the market adjusted?

1. ADiagram A
2. BDiagram B
3. CDiagram C
4. DDiagram D

As printed in the paper