Which of the Following Statements Is TRUE Regarding Subsidy

question 170

Multiple Choice

Which of the following statements is TRUE regarding subsidy?

• A) A subsidy causes the value of goods to exceed the cost of producing the goods.
• B) A subsidy reduces deadweight loss of nonbeneficial trade.
• C) A subsidy means that the sellers receive less than buyers pay.
• D) Suppliers receive more benefit of a subsidy if the elasticity of supply is less than the elasticity of demand.

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