Figure 4-12



Refer to . The exhibit illustrates the impact of granting a subsidy on a particular good. Which of the following is true for this subsidy given the information provided in the exhibit?

a.

The subsidy has been statutorily (legally) paid to buyers.

b.

The subsidy results in an increase in the selling price of the good.

c.

Sellers will receive a larger proportion of the benefit from this subsidy than buyers.

d.

All of the above are true.


d

Economics

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