Economics · May / June 2026 · Paper 11 · Question 9

The government fixes a minimum price of $4 per kg in the market for rice. It agrees to buy up any surplus rice at this price. [graph: price ($ per kg) vs quantity (000 kgs), with S and D curves, price levels 3 and 4, quantities 90, 100, 110] What will be the total spending by the government on rice?

1. A$20 000
2. B$80 000
3. C$360 000
4. D$440 000

As printed in the paper