Economics (AS & A Level) · May / June 2025 · Paper 11 · Question 14
9708Methods and effects of government intervention in markets
The diagram shows the demand for and supply of eye tests provided by opticians. [diagram: price-quantity axes with demand curve D and supply curve S intersecting at price P2 and quantity Q1; price levels P1, P2, P3 marked on the vertical axis and quantities Q1, Q2 on the horizontal axis] Which policy would enable the government to increase the number of eye tests from OQ1 to OQ2?
- Aa maximum price of OP3 per test
- Ba minimum price of OP2 per test
- Ca subsidy paid to opticians of P3-P2 per test
- Da subsidy paid to opticians of P3-P1 per test
As printed in the paper
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Correct answer: D. a subsidy paid to opticians of P3-P1 per test
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