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

Maximum and minimum prices — practice question

The diagram illustrates the market for heating oil. If the government brings in a production subsidy, how will the financial advantage be divided between consumers and producers?

  • AIt will be shared equally between producer and consumer.
  • BIt will go entirely to the producer.
  • CThe majority will go to the consumer.
  • DThe majority will go to the producer.

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