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Daily Problem·Friday, 13 December 2024Back to today

Impact of subsidies on market equilibrium

GCSE · Economics · OCR · 2.1 — Role of markets

Question

Figure 1 shows the supply and demand for electric vehicles (EVs) before government intervention.

Explain the impact on the market for EVs if the government introduces a subsidy for manufacturers.

(4 marks)

4 marks · take your time before peeking.

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