If the Elasticity of Demand Is Much Greater Than the Elasticity

question 82

Multiple Choice

If the elasticity of demand is much greater than the elasticity of supply,a subsidy awarded to demanders will

• A)benefit the demanders more than the suppliers
• B)benefit the suppliers more than the demanders
• C)the benefit of the subsidy will be equally shared between the demanders and the suppliers
• D)allow the demanders to be the only ones who will benefit
• E)Without more information as to the amount of the subsidy,who will benefit more can not be determined

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Definitions:

Appropriateness

The quality of being suitable, fitting, or right for a specific context or circumstances.

Id

In psychoanalytic theory, the part of the mind that acts as the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Primitive

Denotes something that is basic or unsophisticated in terms of development or technology, often implying an early stage of evolutionary or historical development.

Instinctive Component

An innate part of behavior that arises from within and is driven by evolutionary pressures, without the need for conscious thought.