DP Economics
Question 18N.3.HL.TZ0.2c
| Date | November 2018 | Marks available | [Maximum mark: 4] | Reference code | 18N.3.HL.TZ0.2c |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Explain | Question number | c | Adapted from | N/A |
c.
[Maximum mark: 4]
18N.3.HL.TZ0.2c
Figure 3 illustrates the market for cotton in the country of San Marcus, a small closed economy. Cotton is used as an input in the San Marcus textile industry. Quantity is in thousands of kilograms (kg).
The Government of San Marcus decides to provide a subsidy equal to $8 per kilogram to its producers of cotton.
(c)
Explain two reasons why the government of San Marcus may have decided to grant a subsidy to its cotton producers.
[4]
Markscheme
