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

question 160

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) 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.
• B) Textbook buyers will receive an actual benefit of $20 from the subsidy, while textbook sellers will receive an actual benefit of $10 from the subsidy.
• C) Textbook buyers will receive the full $30 benefit from the subsidy.
• D) Textbook sellers will receive the full $30 benefit from the subsidy.

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