A subsidy
A) Is a payment that increases the amount that buyers pay for a good
B) Is a payment that reduces the amount that buyers pay for a good
C) Is a payment that reduces the amount that sellers receive
D) A and C

Question

Quizplus · Accepted Answer

A subsidy is a payment that reduces the amount that buyers pay for a good. It is typically given by the government to producers to encourage production of a certain good or service, and can help to make it more affordable for consumers. This stimulates demand, and can help to stimulate economic growth in a particular industry or sector.

A Subsidy