A subsidy to wheat farmers will
A) increase the quantity of wheat demanded.
B) decrease the quantity of wheat supplied.
C) increase the supply of wheat.
D) leave both the supply and demand of wheat unchanged.

Question

Quizplus · Accepted Answer

A subsidy to wheat farmers will lower the cost of production for farmers and increase their profitability. As a result, farmers will produce more wheat and supply more to the market, leading to an increase in the supply of wheat.

A Subsidy to Wheat Farmers Will