In the Above Figure, If a Medicare Subsidy That Had

question 101

Multiple Choice

In the above figure, if a Medicare subsidy that had previously been paid by the government has now been eliminated, the result will be

• A)an increase in the price received by producers, from to .
• B)a decrease in the price received by producers, from to .
• C)an increase in the price paid by consumers, from to .
• D)a decrease in the price paid by consumers, from to .

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Definitions:

Equipment

Tangible property used in the operation of a business but not consumed or sold during the business cycle.

Independent Variable

In experiments, a variable that is manipulated to determine its effect on a dependent variable, independent of other variables.

Dependent Variable

A variable in an experiment or study whose changes depend on the manipulation of one or more independent variables.

Consumption

The use of goods and services by households, representing the end phase of the economic process as goods are utilized to fulfill needs or wants.