A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2022 · Q181 Mark
The bus fare in a rural area is $5 per journey. The government decides to improve local transport by giving bus firms a subsidy of $2 per journey. The diagram shows the possible changes in demand and supply. What is the new quantity of journeys and the bus fare for a journey? [Figure 18]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Aquantity of journeys: 950, bus fare ($): 3
Bquantity of journeys: 950, bus fare ($): 7
Cquantity of journeys: 1050, bus fare ($): 4
Dquantity of journeys: 1050, bus fare ($): 6
✓ Correct answer
C: quantity of journeys: 1050, bus fare ($): 4
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 →