A government introduces a subsidy for producers of greenhouse-grown tomatoes. Their planned weekly supply is shown below.
| Market price per tray | Quantity supplied before subsidy (trays per week) | Quantity supplied after subsidy (trays per week) |
|---|---|---|
| £10 | 400 | 520 |
| £12 | 480 | 600 |
Using the information in the table, explain how the subsidy affects the supply of greenhouse-grown tomatoes.
81 exam-style questions on OCR GCSE Economics 2.3 Supply, covering 2.3.1 What is supply, 2.3.2 Draw a supply curve using data, 2.3.3 Explain a supply curve, 2.3.4 Shifts and movements of the supply curve, 2.3.5 Causes and consequences of supply changes, 2.3.6 Price elasticity of supply, 2.3.7 Draw supply curves of different elasticity, and 2.3.8 Importance of price elasticity of supply. Each one has a worked solution and a mark scheme showing where the marks go.