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

question 109

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 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:

Hydrocarbons

Organic compounds composed entirely of hydrogen and carbon, commonly found in fossil fuels and used as a primary energy source.

Nonrenewable Fossil Fuels

These are fuels like coal, oil, and natural gas, derived from the decomposed remains of plants and animals, that cannot be replenished within a human time scale.

Anthracite Coal

The highest grade of coal, known for its high carbon content, low volatility, and high energy content, used primarily for heating and in industrial processes.

Peat Coal

A precursor to coal formed from the partial decomposition of plant material in wet, acidic conditions, often used as fuel.