Suppose That a Per-Unit Subsidy Is Granted to Each Individual

question 24

Multiple Choice

Suppose that a per-unit subsidy is granted to each individual who consumes a product providing external benefits to society at large. Each individuals demand curve will shift ________, and the market demand curve for the product will shift ________.

• A) to the right; to the right
• B) to the right; to the left
• C) to the left; to the left
• D) to the left; to the right