A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2011 · Q91 Mark
The table shows demand and supply schedules for red peppers. The equilibrium price is initially 15 cents per kg. [Table showing price per kg (cents), amount demanded kg (thousands), amount supplied kg (thousands)] The government pays a subsidy of 10 cents per kg to producers. What will be the new equilibrium price charged to consumers?
A5 cents
B10 cents
C15 cents
D20 cents
✓ Correct answer
B: 10 cents
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