Multiple Choice
Use the figure below to answer the following question(s) .
Figure 4-13
Refer to Figure 4-13. The supply curve S and the demand curve D 1 indicate initial conditions in the market for flu shots. A new government program is implemented that grants buyers a $25 subsidy when they buy a flu shot, shifting the demand curve from D 1 to D 2. Which of the following is true for this subsidy given the information provided in the exhibit?
A) Buyers of flu shots will receive an actual benefit of $10 from the subsidy, while sellers of flu shots will receive an actual benefit of $15 from the subsidy.
B) Buyers of flu shots will receive an actual benefit of $15 from the subsidy, while sellers of flu shots will receive an actual benefit of $10 from the subsidy.
C) Buyers of flu shots will receive the full $25 benefit from the subsidy.
D) Sellers of flu shots will receive the full $25 benefit from the subsidy.
Correct Answer:

Verified
Correct Answer:
Verified
Q50: With a price ceiling above the equilibrium
Q52: Use the table below to choose the
Q52: A tax on the buyers of coffee
Q53: Compared to legal markets, black markets have<br>A)
Q59: An income tax is regressive if<br>A) the
Q115: When policymakers impose price controls, they<br>A) are
Q124: Which of the following examples illustrates a
Q146: The burden of a tax will fall
Q185: When a government subsidy is granted to
Q256: If a household has $40,000 in taxable