Economics 2281 · O Level · Supply

Supply — practice question

The diagram illustrates the demand and supply curves for a product at its equilibrium price $P$. How would the introduction of a subsidy be represented?

  • ADemand would shift to $D_1$.
  • BDemand would shift to $D_2$.
  • CSupply would shift to $S_1$.
  • DSupply would shift to $S_2$.

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