Economics 0455 · IGCSE · The role of government

The role of government — practice question

The diagram illustrates the demand curve $D_1$ and supply curve $S_1$ for a good. The government then grants a subsidy to stimulate production. What will be the government’s total cost of providing the subsidy?

  • A$40$
  • B$50$
  • C$100$
  • D$150$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI