Suppose That a Subsidy Is Provided for the Consumption of Good

question 42

Multiple Choice

Suppose that a subsidy is provided for the consumption of good ABC,and the subsidy is different for different units of good ABC (e.g.,$10 subsidy on the first unit of good ABC and $7 on the second unit of good ABC,etc.) .The demand curve with such a subsidy will lie to the ______________ of the demand curve without a subsidy,__________ parallel to the demand curve without any subsidy.

• A) left; but will not be
• B) left; and will be
• C) right; and will be
• D) right; but will not be

---

Definitions:

Service Intensive

Describes businesses or industries that are heavily reliant on human labor and personal interaction to deliver their services.

Risk

The potential for loss, damage, or any other negative occurrence that is caused by external or internal vulnerabilities and that may be mitigated through preemptive action.

Frustration

The feeling of upset or annoyance, often due to inability to change or achieve something.

Income

Refers to the money an individual or business receives in exchange for providing a good or service or through investing capital.