A Level Economics (9708)•9708/11/O/N/18

Explanation
Additional government purchases equal the supply shift at price P Steps:
- Quantity demanded at P remains constant between years.
- In year 1, government buys excess supply (Qs on S minus Qd), labeled as segment (S S1).
- In year 2, supply shifts right to S1, increasing Qs at P by the horizontal distance between S and S1.
- Additional purchases = year 2 excess (Qs on S1 minus Qd) minus year 1 excess = shift distance between S and S1 at P. Why D is correct:
- YZ measures the horizontal shift between S and S1 at P, matching the extra quantity supplied that government must buy to maintain P. Why the others are wrong:
- A. WZ is total year 1 purchases, not the increase.
- B. XY is part of year 1 excess, unrelated to shift.
- C. XZ is total year 2 purchases, exceeding the additional amount.
Final answer: D
Topic: Methods and effects of government intervention in markets
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