Use the Following to Answer Questions

question 107

Multiple Choice

Use the following to answer questions:
Figure: Supply and Demand with Subsidy
-(Figure: Supply and Demand with Subsidy) Refer to the figure. With a $2-per-unit subsidy, the price received by sellers is ________ and the price paid by consumers is ________.

• A) $3; $2
• B) $2; $4
• C) $4; $2
• D) $3; $4

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Definitions:

Kilometers

A unit of measurement equal to 1,000 meters, commonly used to measure distances between geographical locations.

Eroded

The process by which natural forces remove soils, rock, or dissolved material from one location and transport it to another, often leading to changes in landscape and topography.

Volcanic

Pertaining to the processes associated with the eruption and formation of volcanoes and their emitted materials.

Basalt

A dark, fine-grained volcanic rock that is formed from the rapid cooling of basaltic lava exposed at or very near the surface of a planet.