A-LevelEconomicsGovernment Intervention in the MarketFeb/Mar 2017Paper 1 Q151 Mark
The initial market for a product is represented by the demand and supply curves D₁ and S₁ respectively. A subsidy is then introduced, represented by the shift of S₁ to S2 (+ subsidy). [Diagram] What is the incidence of the subsidy for the consumer and producer?
APN NA
BQR TR
CQT QB
DTR QR
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of government intervention in the market within the Economicssyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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