Economics (AS & A Level) · May / June 2026 · Paper 14 · Question 11
9708Methods and effects of government intervention in markets
A government has decided to provide a subsidy on a merit good which has a downward sloping demand curve. What will always fall as a result?
- Aconsumer expenditures
- Bgovernment expenditures
- Cprice of the product
- Dproducer revenues
As printed in the paper
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Correct answer: C. price of the product
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