The Volumetric Ethanol Excise Tax Credit (VEETC) Is a Tax

The Volumetric Ethanol Excise Tax Credit (VEETC) is a tax credit (which acts like a subsidy) for registered ethanol-gasoline blenders. Qualified blenders receive $0.51 for each gallon of pure ethanol they blend into gasoline. What statement is TRUE?

A) With a subsidy, the price paid by consumers will be lower than without a subsidy.
B) Without a subsidy, the quantity produced by blenders will be greater than the quantity demanded.
C) With a subsidy, the equilibrium quantity produced will be lower than without a subsidy.
D) With a subsidy, production will be efficient.