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A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2021 · Q171 Mark

A government wishes to increase the supply of houses. It pays a subsidy to brick manufacturers to increase supplies of bricks to S2. The diagram shows the supply of and demand for bricks. [diagram] Which size of subsidy per unit is required to increase supply to S2?

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.

AOP3
BP1P2
CP1P3
DP2P3

✓ Correct answer

C: P1P3

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About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2021 Paper 1 Variant 2, question 17.

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