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Figure: Demand and Supply with Subsidy (Figure: Supply and Demand

Question 29

Multiple Choice

Figure: Demand and Supply with Subsidy Figure: Demand and Supply with Subsidy (Figure: Supply and Demand with Subsidy) Refer to the figure.Suppose a subsidy allows sellers to receive their product at theprice of $8 with a quantity of 400 units. What is the dollaramount of the subsidy per unit of the good? A) $1 B) $6 C) $2 D) $100 (Figure: Supply and Demand with Subsidy) Refer to the figure.Suppose a subsidy allows sellers to receive their product at theprice of $8 with a quantity of 400 units. What is the dollaramount of the subsidy per unit of the good?


A) $1
B) $6
C) $2
D) $100

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