Economics · May / June 2019 · Paper 11 · Question 18
The diagram shows the demand curve D1 and supply curve S1 for a good. The government introduces a subsidy to encourage production. What will be the total cost of the subsidy to the government?
- A$40
- B$50
- C$100
- D$150
As printed in the paper
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Correct answer: B. $50
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