Economics 2281 · O Level · Price determination

Price determination — practice question

A government wants to raise output and expand steel sales by giving subsidies to private producers. Each tonne receives a subsidy of $W - Z$. Using the diagram, what is the value of sales of steel 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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