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

Maximum and minimum prices — practice question

From the diagram, D represents the demand curve for an agricultural commodity and S shows the original supply curve. The government undertakes to keep farmers’ incomes at no less than this original level. The harvests in four later years are illustrated by the supply curves S1–S4. What total amount will the government have to pay to support farmers during the four later years?

  • A$0
  • B$3000
  • C$6000
  • D$10 000

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