A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2017 · Q151 Mark
A market is in equilibrium at point X. The government then subsidises both consumers and producers by direct payments. What will be the new equilibrium position? [Figure 15.1]
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[Diagram option A]
B[Diagram option B]
C[Diagram option C]
D[Diagram option D]
✓ Correct answer
C: [Diagram option C]
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