If a government wants to encourage the consumption of a particular good, it should enact:
A) a subsidy to buyers, as this will most greatly affect consumption of the good.
B) a subsidy to sellers, as this will increase the amount of the good that is produced and offered for sale.
C) a subsidy to buyers, as this will give the benefit to the more deserved party.
D) a subsidy on either buyers or sellers, as both will have the same effect on the market.
Correct Answer:
Verified
Q161: Does a subsidy to buyers affect the
Q162: When would a subsidy to sellers benefit
Q163: Who benefits from a subsidy to sellers?
A)
Q164: Does a subsidy to sellers affect the
Q165: A government plans to implement a $1
Q167: Is it possible for sellers to benefit
Q168: Who benefits from a subsidy to buyers?
A)
Q169: In general, price controls have a _
Q170: We would expect that a tax on
Q171: Does a subsidy to sellers affect the
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