The Graph Shown Portrays a Subsidy to Buyers

question 159

Multiple Choice

The graph shown portrays a subsidy to buyers. What is the amount of money the government has spent on this subsidy?

• A) $3,600
• B) $2,400
• C) $6,000
• D) $800

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Definitions:

Mandated Price

A price set by government regulation or law, rather than determined by market forces of supply and demand.

Health Costs

Expenses related to maintaining the health of individuals, including medical care, medications, and hospital services.

Maximum Price

A price ceiling set by the government, meant to prevent prices from reaching levels considered too high.

Market Price

The current price at which an asset or service can be bought or sold.