Which of the Following Generalizations About the Benefit of a Subsidy

question 84

Multiple Choice

Which of the following generalizations about the benefit of a subsidy is correct?

• A) The more inelastic the supply of a product, the larger the portion of the benefit will be to buyers.
• B) The more inelastic the demand for a product, the larger the portion of the benefit will be to buyers.
• C) The more elastic the supply of a product, the smaller the portion of the benefit will be to buyers.
• D) The distribution of the benefit of a subsidy is not affected by the elasticity of the supply and demand for the product for which the subsidy is granted.

---

Definitions:

Dietetics

The branch of knowledge focused on diet and its effects on health, especially with the practical application of a scientific understanding of nutrition.

Nutrition

The process by which living organisms obtain and process the nutrients needed for growth, maintenance, and energy through the intake and assimilation of food substances.

Saw Palmetto

A plant known for its use in herbal remedies, particularly for urinary symptoms related to an enlarged prostate gland.

Phytosterol Compounds

Naturally occurring compounds found in plant cell membranes that resemble cholesterol structurally and function in lowering LDL cholesterol in humans.