Does a Subsidy to Sellers Affect the Supply Curve

question 137

Multiple Choice

Does a subsidy to sellers affect the supply curve?

• A) Yes; the supply curve shifts down 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:

Shape Constancy

The perceptual phenomenon where the perceived shape of an object remains constant despite changes in the viewing angle or distance.

Retinal Image

The image projected onto the retina, which is the light-sensitive layer at the back of the eye.

Increasingly Larger

Describes a process or condition that grows or expands in size, volume, or quantity over time.

Distance

A measurement of the space between two points, often discussed in the context of physical space but also applicable in abstract senses.