Whether a Subsidy for a Certain Good Is Given to a Demander

question 31

Multiple Choice

Whether a subsidy for a certain good is given to a demander or supplier is irrelevant because

• A) in either case,the price that the demander has to pay will decrease;while the price the supplier receives will increase
• B) in either case,the price that the demander has to pay will increase;while the price the supplier receives will decrease
• C) either situation will create excess demand
• D) either situation will create excess supply
• E) none of these are correct

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