If the Government Quit Subsidizing a Product, Consumer Surplus Would

question 29

Multiple Choice

If the government quit subsidizing a product, consumer surplus would _____ and producer surplus would _____.

• A) increase; decrease
• B) decrease; decrease
• C) increase; increase
• D) decrease; increase

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Definitions:

Consideration

In contract law, consideration refers to something of value that is exchanged between parties as part of an agreement.

Capacity

The legal ability of a person to enter into binding contracts.

Legal Right

A legal right is an entitlement or permission recognized by law, provided to individuals or entities, covering both freedoms and entitlements.

Reward Notices

Announcements or notifications that inform stakeholders about rewards or incentives offered, typically for providing information or achieving certain goals.