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

Maximum and minimum prices — practice question

The diagram illustrates possible demand and supply curves for college places in a country. The starting equilibrium is X. In order to raise the number of students in colleges, the government provides a subsidy to the colleges and also offers a cash grant to the students. What is the new equilibrium position?

  • Aposition A
  • Bposition B
  • Cposition C
  • Dposition D

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