Subsidies ________ the price paid by the buyer and ________ the price received by the seller.
A) increase; decrease
B) do not change; increase
C) increase; increase
D) decrease; increase
E) decrease; decrease

Question

Quizplus · Accepted Answer

Subsidies decrease the price paid by the buyer because the government is providing financial assistance to the seller, which allows them to lower their prices. However, subsidies increase the price received by the seller because they are receiving additional financial support from the government.

Subsidies ________ the Price Paid by the Buyer and ________

Subsidies the Price Paid by the Buyer and