A Level Economics (9708)•9708/12/M/J/18

Explanation
Subsidy Type from Supply Curve Shift Steps:
- Identify that subsidies shift the supply curve rightward, increasing quantity supplied at each price.
- Note that the shift's shape (parallel or pivoting) reveals if the subsidy is fixed per unit or percentage-based.
- For fixed-sum subsidies, the shift is parallel, adding a constant amount to supply at all prices.
- Without the diagram, the exact shift pattern (parallel vs. non-parallel) cannot be determined to distinguish subsidy types.
Why B is correct:
- Not enough information; the diagram is needed to confirm if the shift matches a fixed sum or percentage subsidy.
Why the others are wrong:
- A: Diagram absent, so cannot verify falling percentage effect on shift.
- C: Diagram absent, so cannot verify rising percentage effect on shift.
- D: Diagram absent, so cannot verify fixed-sum per unit parallel shift.
Final answer: Not enough information.
Topic: Methods and effects of government intervention in markets
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