If a $50 Subsidy Is Legally (Statutorily) Granted to the Sellers

question 226

Multiple Choice

If a $50 subsidy is legally (statutorily) granted to the sellers of exercise equipment and as a result the price of exercise equipment to consumers falls by $30, the actual benefit of the subsidy

• A) goes completely to buyers of exercise equipment.
• B) goes completely to sellers of exercise equipment.
• C) is $30 to buyers and $20 to sellers.
• D) is $20 to buyers and $30 to sellers.