A Subsidy on a Product Will Generate More Actual Benefit

question 239

Multiple Choice

A subsidy on a product will generate more actual benefit for producers (and less for consumers) when

• A) the supply of the product is relatively inelastic.
• B) the supply of the product is relatively elastic.
• C) the demand for the product is relatively inelastic.
• D) either b or c is true

---

Definitions:

Business Organization

The structure and framework within which an enterprise operates, detailing the roles, relationships, and responsibilities of its entities.

Pool Their Resources

To combine assets, funds, or talents of a group of people for a common purpose or to achieve a common goal.

Business Trust

A legal entity formed under trust law to pursue business activities, offering participants flexibility in management and investment.

Assets

Economic resources or owned items of value that an individual, company, or organization possesses.