Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

The table presents the demand and supply schedules for a product both before and after the government gives producers a subsidy of $4 per unit. If any additional sales are made to new consumers, how much do the original consumers of the product benefit from the subsidy by saving?

  • A$300
  • B$600
  • C$900
  • D$1500

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