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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At higher interest rates, banks will want to hold more reserves.
Answer the following statement true (T) or false (F)
Naomi Burko, who is a dairy farmer in Tigerton, Wisconsin, became unemployed because fewer and fewer people, concerned about their health, consumed butter. Naomi can best be described as
a. frictionally unemployed b. structurally unemployed c. cyclically unemployed d. not part of the labor force e. a discouraged worker
The U.S. government spent over $3.6 trillion in budget year 2010
a. True b. False Indicate whether the statement is true or false
A tax elasticity of supply equal to zero indicates that
A. Employers will not hire any workers if tax rates increase. B. Workers will not cut back on the number of hours worked if tax rates increase. C. Employers will hire more workers if tax rates increase. D. Workers will not work at all if tax rates increase.