The benefit of a subsidy accrues mostly to consumers:

Name: The benefit of a subsidy accrues mostly to consumers:
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If Ed/Es is small, the subsidy will mostly benefit consumers. This is because a small Ed/Es means that the demand curve is relatively inelastic, so consumers will not reduce their consumption of the good very much in response to the higher price. As a result, the subsidy will mostly be passed on to consumers in the form of lower prices.

The Benefit of a Subsidy Accrues Mostly to Consumers