The Graph Shown Portrays a Subsidy to Buyers

question 47

Multiple Choice

The graph shown portrays a subsidy to buyers. What will result from this subsidy?

• A) A higher quantity will be bought a nd sold at a higher price.
• B) Customers will be worse off than before the subsidy was placed.
• C) Producers will be worse off than before the subsidy was placed.
• D) None of these are true.

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