Multiple Choice
A subsidy to buyers has been placed in the market in the graph shown.Why might the government enact such a policy?
A) As a way to encourage the consumption of the good
B) As a way to encourage consumers to substitute away from the good
C) As a way to discourage the production of the good
D) As a way to discourage the consumption of the good
Correct Answer:
Verified
Related Questions
Q122: If the demand curve is less elastic
Q123: Q124: If the supply curve is more inelastic Q125: Tax incidence:
A) depends on the relative elasticity
