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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