Economics (AS & A Level) · May / June 2026 · Paper 12 · Question 13
9708Methods and effects of government intervention in markets
The diagram shows the impact of a government subsidy on the provision of a merit good. S is the original supply curve and S1 is the supply curve with the subsidy. What is the total cost of the subsidy?
- A$200
- B$400
- C$800
- D$1200
As printed in the paper
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Correct answer: C. $800
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