The Graph Shown Portrays a Subsidy to Buyers

question 108

Multiple Choice

The graph shown portrays a subsidy to buyers. After the subsidy is in place, the post-subsidy price paid by buyers is _______ and the post-subsidy price received by sellers is _______; the difference between these two figures is the amount of _______.

• A)$24; $40; the subsidy
• B)$30; $46; the subsidy
• C)$40; $24; the subsidy
• D)$24; $40; government revenue

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Definitions:

Psychological Effects

The impact on an individual's thoughts, feelings, and behaviors resulting from various stimuli or experiences.

Natural

Existing in or derived from nature; not made or caused by humankind.

Analogue

Something that is similar or comparable to another thing, particularly in function or features.

Natural Experiment

An empirical study in which individuals are exposed to experimental and control conditions that are determined by nature or by other factors outside the control of the investigators.