A-level Paper 1, June 2017Markets and Business Behaviour
A-level Paper 1, June 2017, Q3(c)
One effect of the subsidy is to increase:
Multiple choice1 mark
Context
The Indian government has introduced a subsidy on domestic cooking gas cylinders in the city of Mumbai. The diagram below shows the effect following the introduction of the subsidy. Price per cylinder (Rupees)
Aconsumer surplus
Bmarket failure
Cpublic good provision
Dtax revenue
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