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

Maximum and minimum prices — practice question

In the diagram, D shows the demand curve for an agricultural commodity, while S represents the original supply curve. The government undertakes to keep farmers’ incomes at least at this starting level. The harvests in the four following years are illustrated by supply curves S1–S4. What total amount will the government have to pay to support farmers during those four later years?

  • A$0
  • B$3000
  • C$6000
  • D$10000

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI