Which of the Following Statements Is True

question 27

Multiple Choice

Which of the following statements is true?

• A)Consumers are better off with a fixed-quantity subsidy than an equal-cost voucher system.
• B)Voucher systems will not increase the quantity consumed of the subsidized good.
• C)With a fixed-quantity subsidy consumers will consume more of other goods.
• D)Fixed-quantity subsidies and voucher systems can both place the consumer on a higher indifference curve.

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