A government subsidy for a good
A) is similar to a tax insofar as it decreases the production of the good being subsidized.
B) increases production of the subsidized goods.
C) punishes those who consume or produce the subsidized good.
D) has no effect on the quantity of the good produced.
B
You might also like to view...
Central Bank or called Fed
What will be an ideal response?
If movie theatres decided to increase the price for the movie tickets, holding other factors constant, what would happen to the demand for popcorn in the theatres? a. the demand for popcorn would shift to the left because popcorn and movies are substitute goods
b. the demand for popcorn would shift to the left because popcorn and movies are complementary goods. c. the demand for popcorn would shift to the right because popcorn and movies are substitute goods. d. the demand for popcorn would shift to the right because popcorn and movies are complementary goods.