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

question 120

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 figure?

• A) The original price of a flu shot was $75, and after the subsidy, it rises to $90.
• B) $65 represents the net price a buyer must pay for a flu shot after taking into account the subsidy payment.
• C) 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.
• D) All of the above are true.

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Definitions:

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

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A manufacturing facility dedicated to the production of toys made from wood, often celebrated for their durability and environmentally friendly materials.

Natural Capital

The world's stocks of natural assets including geology, soil, air, water and all living organisms.