Use the Figure Below to Answer the Following Question(s)

question 33

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-12

Refer to Figure 4-12. The exhibit illustrates the impact of granting a subsidy on a particular good. Which of the following is true for this subsidy given the information provided in the exhibit?

• A) The subsidy has been statutorily (legally) paid to buyers.
• B) The subsidy results in an increase in the selling price of the good.
• C) Sellers will receive a larger proportion of the benefit from this subsidy than buyers.
• D) All of the above are true.

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Definitions:

Alcohol

An organic compound used in beverages and medications, acting as a central nervous system depressant, widely consumed worldwide.

Cocaine

A powerful stimulant drug derived from coca leaves, used recreationally for its euphoric effects and clinically for specific medical purposes.

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of various opium poppy plants, which is highly addictive and illegal.

Caffeine

A stimulant of the central nervous system often consumed in coffee, tea, soda, and energy drinks, known to reduce fatigue and improve concentration.