If a $50 subsidy is legally (statutorily) granted to the sellers of weed eaters and as a result the price of weed eaters to consumers falls by $30, the actual benefit of the subsidy
A) goes completely to buyers of weed eaters.
B) goes completely to sellers of weed eaters.
C) is $30 to buyers and $20 to sellers.
D) is $20 to buyers and $30 to sellers.

Question

Quizplus · Accepted Answer

The price to consumers falls by $30, indicating that buyers receive a $30 benefit. The remaining $20 of the $50 subsidy benefits the sellers.

If a $50 Subsidy Is Legally (Statutorily) Granted to the Sellers