Which of the following is caused by a subsidy for sellers of a particular item?
(i) an increase in supply
(ii) an increase in quantity sold
(iii) a leftward shift of demand curve
A)(i), (ii), and (iii)
B)(i) and (ii)
C)(ii) and (iii)
D)only (i)

Question

Quizplus · Accepted Answer

A subsidy for sellers of a particular item would incentivize them to produce and sell more of that item, leading to an increase in supply and an increase in the quantity sold. It would not, however, cause a leftward shift of the demand curve, as the subsidy does not affect consumer preferences or the willingness to pay for the item.

Which of the Following Is Caused by a Subsidy for Sellers