Jan 2013 Microeconomics MCQWatch
The answer is 'B', and my rationale is that at a price level of £15 quantity supplied will be 15 million units and quantity demanded will be 5 million units, leading to a surplus in supply of 10 million units. For each unit, the government will effectively pay £10 (buy each at £15 but sell for £5). £10 * 10 million = £100 million.
Please could somebody verify that this is the correct chain of reasoning? Thank you in advance for your help