Figure: Demand and Supply with Subsidy (Figure: Supply and Demand

question 75

Multiple Choice

Figure: Demand and Supply with Subsidy (Figure: Supply and Demand with Subsidy) Refer to the figure.What is the deadweight loss caused by the subsidy?

• A)$100
• B)$200
• C)$3,200
• D)$800

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Definitions:

Poison

A substance that is capable of causing illness or death to organisms, typically by chemical reaction or other activity on the molecular scale, when an adequate quantity is absorbed.

Anecdotes

Short, often amusing or interesting stories about a real incident or person, typically used to illustrate or support a point.

ESP

Extrasensory perception, which is the claimed ability to gain information through the mind without the use of the traditional five senses.

Falsifiable

A criterion for a theory or hypothesis, stating that it must be possible to refute it through observation or experiment.