AS Paper 1, November 2020Introduction to Markets and Market Failure
AS Paper 1, November 2020, Q3(a)
In the diagram below, the government grants a subsidy to energy suppliers to install loft insulation. This shifts the market supply curve for loft insulation from Supply to Supply . 1 2 Price of loft insulation Supply Supply J P K P P L M P Demand O Q Q Quantity of loft insulation 1 2 The total amount spent by the government on subsidies is represented by the area:
Multiple choice1 mark
Context
The ‘Energy Company Obligation’ is the government’s term for its programme to make houses in the UK more energy efficient.
AOP JQ
BOP LQ
CP P JL
DP P KM
Original diagram required. See the original question paper for the diagram.