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?ARs 217 500 000BRs 435 000 000CRs 1 812 500 000DRs 2 247 500 000Original examination diagramMark as masteredShow AnswerB — the producer incidence is the amount of the subsidy retained by producers per unit multiplied by the post-subsidy quantity, giving Rs435,000,000.Add to Test