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Question 18N.3.HL.TZ0.b.i

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Date November 2018 Marks available [Maximum mark: 2] Reference code 18N.3.HL.TZ0.b.i
Level HL Paper 3 Time zone TZ0
Command term Draw, Label Question number b.i Adapted from N/A
b.i.
[Maximum mark: 2]
18N.3.HL.TZ0.b.i

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.

Draw and label the new supply curve following the granting of the subsidy to domestic cotton producers on Figure 3.

 

[2]

Markscheme

Drawing a new supply curve parallel and below / to the right of the original supply curve is sufficient for [1].

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