If the government provides a subsidy to producers, what is the effect of this policy in a supply and demand diagram?
A) The demand curve shifts leftward and the price rises.
B) The supply curve shifts rightward and the price falls.
C) The supply curve shifts leftward and the price falls.
D) The supply curve shifts leftward and the price rises.
E) The demand curve shifts rightward and the price rises.
B
You might also like to view...
Which of the following functions of money would be violated if inflation were high?
a. unit of account b. store of value c. certificate of gold d. medium of exchange
Microeconomics, as opposed to macroeconomics, includes the study of what determines the
A) unemployment rate in the United States. B) profitability of the airline industry. C) size of the federal deficit. D) rise or fall of the inflation rate.
Why might economists prefer private ownership of monopolies over public ownership of monopolies?
U.S. official reserves are
A) equal to the balance on the capital and financial account. B) equal to the value of U.S. government debt in the hands of foreigners. C) equal to the government's holding of gold. D) equal to the value of the government's oil reserves. E) the government's holding of foreign currency.