If F Is the Quantity Food to Which Households Are

question 9

Multiple Choice

If F is the quantity food to which households are entitled,Ps is the subsidized price the household has to pay to obtain the good,and Pᵤ is the unsubsidized price,what is the formula for the cash value of any transfer?

• A) (Pu + Ps)*F
• B) (Pu - Ps)*F
• C) (Ps -Pu)*F
• D) F + (Ps + Pu)

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