A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · May/June 2014 · Q181 Mark
In the diagram, the initial quantity traded was Q and the price was P. [Figure: Supply and Demand graph with initial price P and quantity Q, then a rise to P₁ and Q₁]
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.
Athe removal of a maximum price and the imposition of an income tax on consumers
Bthe removal of a maximum price and the removal of a subsidy to producers
Cthe removal of a minimum price and the granting of a subsidy to producers
Dthe removal of a minimum price and the imposition of an indirect tax on the product
✓ Correct answer
B: the removal of a maximum price and the removal of a subsidy to producers
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