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

question 299

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 D₁ 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 D₁ to D₂. Which of the following is true for this subsidy given the information provided in the figure?

• A) The original price of a flu shot was $75, and after the subsidy, it rises to $90.
• B) $65 represents the net price a buyer must pay for a flu shot after taking into account the subsidy payment.
• C) 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.
• D) All of the above are true.

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Definitions:

Foreign Policy

A government's strategy in dealing with other nations, involving diplomacy, economic measures, military action, and treaties to advance national interests.

Harry S. Truman

The 33rd President of the United States, serving from 1945 to 1953, known for implementing the Marshall Plan to rebuild the economy of Western Europe, and for leading the U.S. during the early Cold War.

Vyachslaw Molotov

A prominent Soviet politician and diplomat known for his role in the Stalin administration, including as Foreign Minister.