Economics (AS & A Level) · Feb / March 2021 · Paper 12 · Question 17
9708Methods and effects of government intervention in markets
A government wishes to increase the supply of houses. It pays a subsidy to brick manufacturers to increase supplies of bricks to S2. The diagram shows the supply of and demand for bricks. Which size of subsidy per unit is required to increase supply to S2?
- AOP3
- BP1P2
- CP1P3
- DP2P3
As printed in the paper
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Correct answer: C. P1P3
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