Who Actually Benefits from a Subsidy to Sellers

question 81

Multiple Choice

Who actually benefits from a subsidy to sellers?

• A) Only consumers benefit from any kind of subsidy.
• B) Only sellers benefit, since it is their subsidy.
• C) The benefit is shared depending on elasticity of the supply and demand curves.
• D) None of these statements is true.

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Definitions:

Without Prejudice

A legal term indicating that a communication cannot be used as evidence in court, often used in negotiations to allow for candid discussions.

Litigation

The process of taking legal action, including filing lawsuits to resolve disputes between parties.

Legal Error

A mistake in the application or interpretation of the law, which can be grounds for appealing a court decision.

Proceedings

A sequence of legal steps or actions taken to achieve a judicial decision.