A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2023 · Q111 Mark
The diagrams show the demand for and the supply of houses. In the short run, the stock of houses for sale, S₁, is fixed. A government decides to allow some agricultural land to be used for building houses and subsidises lower-income buyers of the new houses. Which diagram shows the long-run situation?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
A[Diagram A]
B[Diagram B]
C[Diagram C]
D[Diagram D]
✓ Correct answer
D: [Diagram D]
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