A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2016 · Q151 Mark
The diagram shows the supply and demand curves of a commodity. A government subsidy causes the supply curve to shift from S₁ to S2. Which area measures the difference between the cost to the economy of producing the resulting increase in output (Q1-Q2) and the value consumers place on this increase in output?
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✓ Correct answer
A: A
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