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Economics (AS & A Level) · May / June 2026 · Paper 11 · Question 13

9708Methods and effects of government intervention in markets

The diagram shows the market for bus services before and after a government subsidy. Which area on the diagram shows the incidence of the subsidy for the consumer?

  1. AP1HIP2
  2. BP1JKP2
  3. CP2IGP3
  4. DP2KLP3

As printed in the paper

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Correct answer: B. P1JKP2

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