Is It Possible for Sellers to Benefit More Than Buyers

question 37

Multiple Choice

Is it possible for sellers to benefit more than buyers from a subsidy to buyers?

• A) Yes, if the sellers need it more.
• B) Yes, if the supply curve is relatively less elastic than the demand curve.
• C) Yes, if the supply curve is relatively more elastic than the demand curve.
• D) No; sellers can never benefit more than buyers from a subsidy to buyers.

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Definitions:

Ausgleich

The compromise of 1867 that established the dual monarchy of Austria-Hungary.

Dual Monarchy

The arrangement in which two separate kingdoms are ruled by the same monarch while maintaining distinct governments and institutions, as with Austria-Hungary from 1867 to 1918.

Austria-Hungary

A central European empire existing from 1867 to 1918, it was a dual monarchy consisting of Austria and Hungary, which dissolved after its defeat in World War I.