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      Question

      A subsidy can actually cause the consumption

      of a subsidized good to fall if
      A The consumer has concave IC Correct Answer Incorrect Answer
      B The government prohibits resale of the good Correct Answer Incorrect Answer
      C It is difficult or very costly for the consumer to supplement the quantity of the subsidized good Correct Answer Incorrect Answer
      D None of the above Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      A subsidy can actually cause the consumption of a subsidized good to fall if the consumer has concave IC.

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