A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2013 · Q181 Mark
In the diagram, D is the demand curve of an agricultural commodity and S is the curve. The government promises to maintain farmers' incomes at least at this initial level. The har in four subsequent years are shown by supply curves S₁ - S₄. In which years will the government need to provide extra income to farmers? [Figure 18.1 showing demand and shifting supply curves for an agricultural commodity]
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.
A1 and 2
B1 and 4
C2 and 3
D3 and 4
✓ Correct answer
B: 1 and 4
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