Economics · Oct / Nov 2018 · Paper 13 · Question 18
A government aims to boost production and increase sales of steel by subsidising private producers. A subsidy equal to W – Z per tonne is paid. According to the diagram, what would be the value of sales of steel after the subsidy?
- AOP × OQ
- BOP₁ × OQ₁
- CWZ × OQ
- DWZ × OQ₁
As printed in the paper
Show the answer
Correct answer: B. OP₁ × OQ₁
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.