Refer to the Below Supply and Demand Graph

question 90

Multiple Choice

Refer to the below supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.If government decides to correct this externality with a subsidy to consumers, then the:

• A)demand curve will shift from D₂ to D₁.
• B)supply curve will shift from S₁ to S₂.
• C)demand curve will shift from D₁ to D₂.
• D)supply curve will shift from S₂ to S₁.

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Definitions:

Contemplation Stage

The period in which an individual is aware a change is needed and is actively considering making that change but has not yet committed to taking action.

Tangible Assistance

Physical or concrete help provided to individuals or groups, such as resources or material aid.

Extrinsic Motivation

Motivation that involves external incentives such as rewards and punishments.

Tangible Assistance

Physical or material support provided to someone, such as financial help or goods.