When a Government Subsidy Is Granted to the Sellers of a Product

question 185

Multiple Choice

When a government subsidy is granted to the sellers of a product, buyers can end up capturing some of the benefit because

• A) the market price of the product will fall in response to the subsidy.
• B) the market price of the product will rise in response to the subsidy.
• C) the market price of the product will not change in response to the subsidy.
• D) producers will reduce the supply of the product.

---

Definitions:

Simple Procedure

An easy or uncomplicated series of steps designed to achieve a specific task or process.

Routine Business Requests

Standard or common requests made in the course of business operations, such as for information or action.

Requesting a Reference

The act of asking someone, typically a former employer or professional contact, to provide a positive account of your abilities or character to a potential employer.

Routine Messages

Regular, standardized communications used for everyday business operations.