Economics (AS & A Level) · Oct / Nov 2025 · Paper 12 · Question 11
9708The interaction of demand and supply
The demand for electric vehicle batteries is derived from the demand for electric vehicles. To tackle climate change, a government subsidises producers of electric vehicles. What are the likely effects of this subsidy on the price and sales of electric vehicle batteries?
- Aprice: decrease; sales: decrease
- Bprice: decrease; sales: increase
- Cprice: increase; sales: decrease
- Dprice: increase; sales: increase
As printed in the paper
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Correct answer: D. price: increase; sales: increase
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