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

Question

Quizplus · Accepted Answer

A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. It can help reduce the price for consumers (buyers) by allowing producers to offer goods or services at a lower price without reducing their profitability.

A Subsidy