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

question 55

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-13

Refer to Figure 4-13. The supply curve S and the demand curve D ₁ indicate initial conditions in the market for flu shots. A new government program is implemented that grants buyers a $25 subsidy when they buy a flu shot, 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) Buyers of flu shots will receive an actual benefit of $10 from the subsidy, while sellers of flu shots will receive an actual benefit of $15 from the subsidy.
• B) Buyers of flu shots will receive an actual benefit of $15 from the subsidy, while sellers of flu shots will receive an actual benefit of $10 from the subsidy.
• C) Buyers of flu shots will receive the full $25 benefit from the subsidy.
• D) Sellers of flu shots will receive the full $25 benefit from the subsidy.

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Definitions:

Functional Currency

The primary currency used by a business or entity in its financial statements, reflecting the principal economic environment in which it operates.

Competitive Forces

The external factors that influence the competitive environment of a business, including competitors, buyers, suppliers, potential entrants, and substitute products.

Temporal Method

A method of foreign currency translation that uses exchange rates based on the timing of the original transactions.

Financial Position

A snapshot of what a company owns and owes at a point in time, typically reflected in the balance sheet.