Economics (AS & A Level) · Oct / Nov 2025 · Paper 11 · Question 12
9708Methods and effects of government intervention in markets
A government gives a subsidy to a producer of a product. What will be the likely effect of this?
- Aa shift to the left in the demand curve and a rise in equilibrium quantity
- Ba shift to the left in the supply curve and a rise in equilibrium quantity
- Ca shift to the right in the demand curve and a fall in equilibrium price
- Da shift to the right in the supply curve and a fall in equilibrium price
As printed in the paper
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Correct answer: D. a shift to the right in the supply curve and a fall in equilibrium price
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