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

Maximum and minimum prices — practice question

The diagram illustrates the market supply and demand curves for an agricultural product. The government ensures that producers receive a minimum price of OX for their output, while the market price is left to be set by demand and supply. Which area on the diagram shows the total subsidy payments that the government makes to producers?

  • AUYTS
  • BUYZW
  • CXUWV
  • DXYZV

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