A-LevelEconomicsGovernment Intervention in MarketsFeb/Mar 2018Paper 1 Q161 Mark
The table shows the demand and supply schedules for a product before and after the government pays a subsidy of $4 per unit to the producers. price $ 6 8 10 12 14 quantity demanded (units) 250 200 150 100 50 quantity supplied before subsidy (units) 50 100 150 200 250 quantity supplied after subsidy (units) 150 200 250 300 350 Assuming that any extra sales are to new consumers, how much do the original consumers of the product save as a result of the subsidy?
A$300
B$600
C$900
D$1500
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The correct answer is A. This question tests the candidate's understanding of government intervention in markets within the Economicssyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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