A Subsidy on a Product Will Generate More Actual Benefit

question 239

Multiple Choice

A subsidy on a product will generate more actual benefit for producers (and less for consumers) when

• A) the supply of the product is relatively inelastic.
• B) the supply of the product is relatively elastic.
• C) the demand for the product is relatively inelastic.
• D) either b or c is true

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Definitions:

Statutory Basis

refers to the legal foundation or authority granted to a law, regulation, or government policy by a legislative body.

Nineteenth Century

The period from January 1, 1801, to December 31, 1900, marked by industrialization, colonial expansion, and significant social, economic, and political changes worldwide.

Public Support

The backing or endorsement of the general populace for a person, policy, or proposal, often measured through opinion polls and elections.

Press Secretary

A senior White House official whose primary responsibility is to act as spokesperson for the administration, managing communications and the dissemination of information to the press and public.