Suppose That Good X Is One of the More Heavily

question 155

Multiple Choice

Suppose that good X is one of the more heavily subsidized industries in the United States.Suppose further that as a result of intense lobbying from health-related concerns,Congress repeals the subsidies on good X.Which of the following scenarios would likely occur?

• A) The supply curve for good X would shift rightward,as it would now be cheaper to produce each level of output.
• B) The supply curve for good X would shift leftward,since it would now cost more to produce each level of output.
• C) There would be no shift in the supply curve for good X; subsidies don't affect output.
• D) There would be a movement along the supply curve for good X,but the supply curve would not shift.

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Definitions:

Lipid

Lipids are organic compounds that are fatty acids or their derivatives and are insoluble in water but soluble in organic solvents. They are crucial for cell membrane structure and energy storage.

Nucleic Acid

Biomolecules essential to life, including DNA and RNA, that carry genetic information for the growth, development, functioning, and reproduction of all living organisms and many viruses.

Protein

Large biomolecules consisting of one or more long chains of amino acid residues, crucial for the structure, function, and regulation of the body's cells, tissues, and organs.

Beta-pleated Sheet

A secondary structure found in proteins, characterized by folded sheets stabilized by hydrogen bonding.