A Subsidy to Buyers Has Been Placed in the Market

question 139

Multiple Choice

A subsidy to buyers has been placed in the market in the graph shown.Why might the government enact such a policy?

• A) As a way to encourage the consumption of the good
• B) As a way to encourage consumers to substitute away from the good
• C) As a way to discourage the production of the good
• D) As a way to discourage the consumption of the good

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Definitions:

IUD

An intrauterine device, which is a small, often T-shaped birth control device inserted into a woman's uterus to prevent pregnancy.

Foramen Ovale

An opening in the septum between the two upper chambers of the heart (atria) that is present in the fetus but normally closes shortly after birth.

Fetal Development

The process of growth and maturation of a fetus inside a woman's uterus from conception to birth.

Left Atria

The left atria is one of the four chambers of the heart, receiving oxygenated blood from the lungs and pumping it into the left ventricle.