Which of the Following Statements Is Correct

question 104

Multiple Choice

Which of the following statements is correct?

• A) If the elasticity of demand is greater than the elasticity of supply, sellers will receive more of the subsidy.
• B) If the elasticity of demand is greater than the elasticity of supply, sellers will receive less of the subsidy.
• C) If the elasticity of demand is less than the elasticity of supply, sellers will receive more of the subsidy.
• D) If the elasticity of demand is greater than the elasticity of supply, buyers will receive more of the subsidy.

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Definitions:

Corporations

Business entities that are legally separate from their owners, providing limited liability protection, and able to own assets and incur debt.

Partnerships

A legal and operational agreement between two or more parties to manage and operate a business jointly, sharing its profits and liabilities.

Revenues

The revenue produced through regular business activities, accounting for discounts and deductions related to returned goods.

Small Business Administration

is a U.S. government agency that provides support to entrepreneurs and small businesses, including loan guarantees, counseling, and training.