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

Maximum and minimum prices — practice question

The diagram shows the initial demand curve D1 and the initial supply curve S1 for electric cars. The government decides to give electric car manufacturers a subsidy. Which area shows the car manufacturer’s total revenue after the subsidy has been received from the government?

  • AOERY
  • BOFMX
  • COGNY
  • DOHTX

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