The Graph Shown Portrays a Subsidy to Buyers

question 52

Multiple Choice

The graph shown portrays a subsidy to buyers. Why might the government enact such a policy?

• A)To encourage consumption
• B)To encourage consumers to substitute
• C)To discourage production
• D)To discourage consumption

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Definitions:

Income Increase

Refers to a rise in the amount of money earned by an individual or entity, which can affect purchasing power and economic status.

Demand Curve

A graphical representation showing the relationship between the price of an item and the quantity demanded at those prices.

Cooked Tomatoes

Tomatoes that have been heated or processed, which can enhance flavor and nutritional value, such as increasing lycopene content.

Health Benefits

The positive effects on health, either physical or mental, derived from the consumption of specific goods, activities, services, or interventions.