Mamma's Honey sells locally produced raw honey at an equilibrium price of $12 a jar and an equilibrium quantity of 200 jars. Which of the following is most likely to be true if the government begins to pay a $3-per-jar subsidy to the seller?
a. The price paid by buyers will increase
b. The price received by sellers will decrease.
c. The quantity demanded by buyers will decrease.
d. Total surplus will decrease.
d
Economics
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