When a government subsidy is granted to the sellers of a product, buyers can end up capturing some of the benefit because
a. the market price of the product will fall in response to the subsidy.
b. the market price of the product will rise in response to the subsidy.
c. the market price of the product will not change in response to the subsidy.
d. producers will reduce the supply of the product.
A
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When a competitive market maximizes economic surplus, it implies that the
A. quantity demanded is lower than the quantity supplied. B. marginal benefit of having the product is greater than the marginal cost. C. combined consumer and producer surplus is maximized. D. buyers are getting the maximum consumer surplus from the product.
The Condorcet voting paradox shows that outcomes based on dictatorial preferences do not always obey the property of transitivity
a. True b. False Indicate whether the statement is true or false
Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 chair is
a. 1/6 table for Ken and 1/3 table for Traci. b. 1/6 table for Ken and 3 tables for Traci. c. 6 tables for Ken and 1/3 table for Traci. d. 6 tables for Ken and 3 tables for Traci.
The law of diminishing returns results in:
A. an eventually falling marginal cost curve. B. a total product curve that eventually increases at a decreasing rate. C. an eventually rising marginal product curve. D. a total product curve that rises indefinitely.