The main problem with price subsidies is that they:
A)do not help the poor afford essential goods and services.
B)are not effective at lowering prices.
C)lead to a decrease in demand.
D)lower total economic surplus.

Name: The main problem with price subsidies is that they: A)do not help the poor afford essential goods and services. B)are not effective at lowering prices. C)lead to a decrease in demand. D)lower total economic surplus.
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Question

Quizplus · Accepted Answer

Subsidies cause total surplus to fall.

The Main Problem with Price Subsidies Is That They