Which of the Following Is a True Statement Regarding the Economic

question 258

Multiple Choice

Which of the following is a true statement regarding the economic impact of a subsidy?

• A) The distribution of the benefits from a subsidy will depend on whether the subsidy is legally granted to the buyer or seller.
• B) When demand is relatively inelastic, the benefits of a subsidy will mainly accrue to sellers.
• C) When supply is relatively elastic, the benefits of a subsidy will mainly accrue to buyers.
• D) When demand is relatively elastic, the benefits of a subsidy will mainly accrue to buyers.

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Definitions:

Resided

Refers to living or being situated in a particular place.

Demonstrative Legacy

A specific bequest in a will that designates a particular source of funding.

Settlement

The process of fulfilling the terms of a contract or agreement, often involving the payment for goods or services or the clearing of a financial instrument.

Probate

A legal process that deals with the assets and debts of a deceased person, ensuring proper distribution according to the will or the law.