Figure 4-13
Refer to . The supply curve S and the demand curve D1 indicate initial conditions in the market for flu shots. A new government program is implemented that grants buyers a $25 subsidy when they buy a flu shot, shifting the demand curve from D1 to D2. Which of the following is true for this subsidy given the information provided in the exhibit?
a.
Buyers of flu shots will receive an actual benefit of $10 from the subsidy, while sellers of flu shots will receive an actual benefit of $15 from the subsidy.
b.
Buyers of flu shots will receive an actual benefit of $15 from the subsidy, while sellers of flu shots will receive an actual benefit of $10 from the subsidy.
c.
Buyers of flu shots will receive the full $25 benefit from the subsidy.
d.
Sellers of flu shots will receive the full $25 benefit from the subsidy.
a
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a. True b. False
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