Economics 0455 · IGCSE · Supply

Supply — practice question

A government wants to raise steel production and expand steel sales by providing subsidies to private producers. A subsidy of $W - Z per tonne is given. Using the diagram, what would the sales value of steel be after the subsidy?

  • A$OP \times OQ$
  • B$OP_1 \times OQ_1$
  • C$WZ \times OQ$
  • D$WZ \times OQ_1$

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