The diagram shows the effect on the supply curve of a product when the government provides a subsidy.
What can be concluded about the nature of the subsidy as the quantity supplied increases?
1 )
It is a falling percentage (%) of the price of each unit.
It is a fixed percentage (%) of the price of each unit.
3 )
It is a fixed sum on each unit.
4 )
It is a rising percentage (%) of the price of each unit.
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