If a Subsidy (Going to Producers)is Created for a Good

question 58

Multiple Choice

If a subsidy (going to producers) is created for a good this would

• A)move its supply curve to the right.
• B)move its supply curve to the left.
• C)cause a movement along the supply curve to a (higher price, higher quantity)point.
• D)cause a movement along the supply curve to a (lower price, lower quantity)point.

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Definitions:

Peer Economy

An economic model based on sharing access to goods and services between individuals, often facilitated through online platforms.

Vehicle-Sharing Service

A model of car rental where individuals can rent vehicles for short periods of time, often by the hour, facilitating urban mobility and reducing private car ownership.

Peer-to-Peer Lender

an online platform that matches people willing to lend money directly to individuals or businesses seeking to borrow, bypassing traditional financial institutions.

Shared Economy

An economic model where assets and services are shared between private individuals, typically via the internet.