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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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