A Subsidy to Buyers Has Been Placed in the Market

question 135

Multiple Choice

A subsidy to buyers has been placed in the market in the graph shown. Why might the government enact such a policy?

• A) As a way to encourage the consumption of the good
• B) As a way to encourage consumers to substitute away from the good
• C) As a way to discourage the production of the good
• D) As a way to discourage the consumption of the good