Whether a Subsidy for a Certain Good Is Given to a Demander

question 31

Multiple Choice

Whether a subsidy for a certain good is given to a demander or supplier is irrelevant because

• A) in either case,the price that the demander has to pay will decrease;while the price the supplier receives will increase
• B) in either case,the price that the demander has to pay will increase;while the price the supplier receives will decrease
• C) either situation will create excess demand
• D) either situation will create excess supply
• E) none of these are correct

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Definitions:

Albinism

A genetic condition characterized by a lack of melanin pigment in the skin, hair, and eyes, leading to light coloring and increased sensitivity to the sun.

Tachypnea

A condition characterized by abnormally rapid breathing.

Tachycardia

A condition characterized by an abnormally fast heart rate, typically more than 100 beats per minute in adults.

Connective

Referring to connective tissue, which supports, binds together, and protects tissues and organs in the body.