Gce Model Questions Vol1 2018 Economics Question 4
Practice objective / multiple choice question 4 from the 2018 Gce Model Questions Vol1 Economics examination.
The market demand for wheat is \(Q_d = 500 - 2P\) (tonnes, price £ per tonne). Without any subsidy the supply curve is \(Q_s = 3P - 30\). The government introduces a per‑unit subsidy to producers, after which the consumer price falls to £80 per tonne. Determine the increase in producer surplus (in £, rounded to the nearest £) caused by the subsidy.
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About This Question
This is Gce Model Questions Vol1 2018 Economics Question 4. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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