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

Maximum and minimum prices — practice question

The table presents demand and supply schedules for red peppers. At first, the equilibrium price is 15 cents per kg. The government then gives producers a subsidy of 10 cents per kg. What is the new equilibrium price paid by consumers?

  • A5 cents
  • B10 cents
  • C15 cents
  • D20 cents

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