Does a Subsidy to Buyers Affect the Supply Curve

question 45

Multiple Choice

Does a subsidy to buyers affect the supply curve?

• A) Yes; the supply curve shifts up by the amount of the subsidy.
• B) Yes; the supply curve shifts to the right by the amount of the subsidy.
• C) No; the supply curve does not move, as quantity supplied increases instead.
• D) No; the supply curve does not move, as quantity supplied decreases instead.

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Definitions:

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted from total income.

Missing Figures

Calculations or estimations used to fill in the gaps of incomplete financial records or statements.

Independent Scenarios

Situations or variables in an analysis that do not depend on or affect each other.

Beginning Merchandise Inventory

The value of a company's inventory of goods available for sale at the start of an accounting period.