The Indian government has introduced a subsidy on domestic cooking gas cylinders in the city of Mumbai - Edexcel - A-Level Economics A - Question 3 - 2017 - Paper 1

To find the percentage share of the total subsidy received by consumers, we need to determine the amount of subsidy allocated to consumers.

Given that the total subsidy calculated is 845.9 million Rupees, we can assume, based on common scenarios in subsidies, that a significant portion is directed to consumers. Let's say, assuming from the graph data that around 13% was directed to consumers.

Percentage share received by consumers = (Consumer subsidy / Total subsidy) × 100

If the consumer subsidy is around 13% of the total:

= (0.13 × 845.9) / 845.9 × 100 = 13%.

Using the same total subsidy amount, calculate the percentage share for producers. Assuming that the remaining portion goes to producers:

Let’s say around 87% was directed to producers based on the subsidy distribution.

Percentage share received by producers = (Producer subsidy / Total subsidy) × 100

If the producer subsidy is around 87% of the total:

= (0.87 × 845.9) / 845.9 × 100 = 87%.

The correct option is D: consumer surplus. The introduction of a subsidy generally lowers prices for consumers, allowing them to purchase more gas cylinders, thereby increasing consumer surplus.