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

Maximum and minimum prices — practice question

The diagram illustrates how a government subsidy affects the supply curve for a product. What conclusion can be drawn about the subsidy as the quantity supplied rises?

  • AIt is a falling percentage (%) of the price of each unit.
  • BIt is a fixed percentage (%) of the price of each unit.
  • CIt is a fixed sum on each unit.
  • DIt is a rising percentage (%) of the price of each unit.

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