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.
✓ Correct answer
C: P1P3
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Government microeconomic intervention and see which topics are most likely to come up next.
Sign up free →