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

question 30

Multiple Choice

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

Refer to Figure 4-12. The supply curve S and the demand curve D ₁ indicate initial conditions in the market for college textbooks. A new government program is implemented that grants students a $30 per textbook subsidy on every textbook they purchase, shifting the demand curve from D ₁ to D ₂. Which of the following is true for this subsidy given the information provided in the exhibit?

• A) The original average selling price of textbooks was $100, and after the subsidy it rises to $120.
• B) $90 represents the net price a buyer must pay for a textbook after taking into account the subsidy payment.
• C) Textbook buyers will receive an actual benefit of $10 from the subsidy, while textbook sellers will receive an actual benefit of $20 from the subsidy.
• D) All of the above are true.

---

Definitions:

Ambient Conditions

Ambient conditions refer to the surrounding environmental factors, like temperature, humidity, and air pressure, that can influence a system or process.

Cellular Production

An approach to manufacturing where equipment and workstations are arranged in a close sequence that facilitates the processing of small batches of parts or products through a series of closely related operations.

Group Technology Codes

A classification system used in manufacturing to group parts into families based on similarities in design or manufacturing process.

Repetitive Layout

refers to a manufacturing layout design where equipment or workstations are organized according to the sequence of operations required to produce a particular product, optimizing for efficiency in high-volume production.