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Edexcel A-Level Economics AS 1.3.4 4d Incidence of Subsidies on Consumers and Producers Questions

Practise reading the pre-subsidy and producer prices plus post-subsidy quantity from a production-subsidy diagram to calculate producer incidence.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • read the producer-price gain and post-subsidy quantity from a diagram to calculate producer incidence

Edexcel A-Level Economics AS 1.3.4 4d Incidence of Subsidies on Consumers and Producers Questions question 1

[Maximum number: 1]

The diagram shows the market for wheat in India after a production subsidy. Which is the producer incidence of the subsidy?

A

Rs 217 500 000

B

Rs 435 000 000

C

Rs 1 812 500 000

D

Rs 2 247 500 000

Original examination diagram

Original examination diagram

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