Use the Figure Below to Answer the Following Question(s)

question 72

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-13
-Refer to Figure 4-13. The supply curve S and the demand curve D₁ indicate initial conditions in the market for flu shots. A new government program is implemented that grants buyers a $25 subsidy when they buy a flu shot, shifting the demand curve from D₁ to D₂. Which of the following is true for this subsidy given the information provided in the exhibit?

• A) Buyers of flu shots will receive an actual benefit of $10 from the subsidy, while sellers of flu shots will receive an actual benefit of $15 from the subsidy.
• B) Buyers of flu shots will receive an actual benefit of $15 from the subsidy, while sellers of flu shots will receive an actual benefit of $10 from the subsidy.
• C) Buyers of flu shots will receive the full $25 benefit from the subsidy.
• D) Sellers of flu shots will receive the full $25 benefit from the subsidy.

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