When Would a Subsidy to Sellers Benefit Buyers More Than

question 82

Multiple Choice

When would a subsidy to sellers benefit buyers more than sellers?

• A) If the buyers are more deserving of the subsidy.
• B) When the demand curve is relatively more elastic than the supply curve.
• C) When the demand curve is relatively less elastic than the supply curve.
• D) Buyers can never benefit more than sellers from a subsidy to sellers.

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Definitions:

Excess Capacity

Refers to the situation where a firm or economy can produce more goods or services than currently produced due to available resources not being fully utilized.

Efficiency

The extent to which time, effort, or cost is well used for the intended task or purpose within supply chain processes.

C2C Cycle

The cycle within consumer-to-consumer transactions, from one individual to another, typically facilitated by third-party platforms.

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.