In the Supply and Demand Model, a Subsidy Granted to Sellers

question 252

Multiple Choice

In the supply and demand model, a subsidy granted to sellers is illustrated by

• A) a downward shift in the demand curve, by the per unit amount of the subsidy.
• B) an upward shift in the demand curve, by the per unit amount of the subsidy.
• C) a downward shift in the supply curve, by the per unit amount of the subsidy.
• D) an upward shift in the supply curve, by the per unit amount of the subsidy.

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Definitions:

Writing Requirement

A legal criterion under certain statutes, such as the Statute of Frauds, that mandates certain contracts must be in written form to be legally enforceable.

Promissory Note

A written promise to pay a specified sum of money to a designated person or entity, at a determinable future time or on demand.

Revolving Line of Credit

A credit arrangement that allows a borrower to use, repay, and re-borrow funds up to a specified credit limit.

Intergovernmental Organization

An entity created by treaty, involving two or more nations, to work on issues of common interest or cooperation.