A Subsidy Targeted to Raise Consumption by a Specific Amount

question 149

Multiple Choice

A subsidy targeted to raise consumption by a specific amount will cost the most when:

• A) both supply and demand are inelastic.
• B) supply is inelastic and demand is elastic.
• C) supply is elastic and demand is inelastic.
• D) both supply and demand are elastic.

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Definitions:

Nasogastric Tube

A flexible tube that is inserted through the nose into the stomach, primarily used for feeding or removing substances from the stomach.

Oral Hygiene

The practice of keeping the mouth, teeth, and gums clean and healthy to prevent disease.

Gingivitis

A common and mild form of gum disease (periodontal disease) that causes irritation, redness, and swelling (inflammation) of your gingiva, the part of your gum around the base of your teeth.

Sweat Glands

Specialized exocrine glands found in the skin that produce sweat as a mechanism for thermoregulation and excretion.