Figure: Demand and Supply with Subsidy Reference: Ref 6-10

question 20

Multiple Choice

Figure: Demand and Supply with Subsidy Reference: Ref 6-10 (Figure: Supply and Demand with Subsidy) Refer to the figure. What is the deadweight loss caused by the subsidy?

• A) $100
• B) $200
• C) $3,200
• D) $800

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Definitions:

Needs For Safety

The requirement for physical and emotional security and protection from harm.

Esteem

A regard or respect for oneself or others; often refers to holding someone in high regard or valuing their abilities and qualities.

Competence

The ability to do something successfully or efficiently, reflecting a person's knowledge or skill.

Autonomy

The capacity to make an informed, uncoerced decision; often associated with the ability to act on one's own values and interests.