Reference: Ref 6-9 (Figure: Supply and Demand with Subsidy) Refer

question 59

Multiple Choice

Reference: Ref 6-9 (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:

Information Scarcity

A situation where necessary or desired information is limited or hard to obtain.

Decision Making Process

A series of steps taken by an individual or a group to identify and evaluate options and make a choice among them.

Assumption Smashing

A creativity and problem-solving technique that challenges and breaks down existing assumptions to explore new possibilities.

Lateral Thinking

A problem-solving technique that involves looking at situations or problems from a unique or unexpected perspective.