Given a choice between an equal-cost cash grant and an excise subsidy,a consumer will:
A)prefer an excise subsidy.
B)prefer an excise subsidy if the good is a normal good.
C)be indifferent between an excise subsidy and a cash grant.
D)be worse off with an excise subsidy.

Question

Quizplus · Accepted Answer

The Answer of Given a choice between an equal-cost cash grant and an excise subsidy,a consumer will:
A)prefer an excise subsidy.
B)prefer an excise subsidy if the good is a normal good.
C)be indifferent between an excise subsidy and a cash grant.
D)be worse off with an excise subsidy.

Given a Choice Between an Equal-Cost Cash Grant and an Excise