A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2017 · Q171 Mark
In the diagram, D is the demand curve of an agricultural commodity and S is the initial supply curve. The government promises to maintain farmers' incomes at least at this initial level. The harvests in four subsequent years are shown by supply curves S1–S4. [Diagram] How much in total will the government need to pay to support farmers over the four subsequent years?
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$0
B$3000
C$6000
D$10000
✓ Correct answer
A: $0
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