Multiple Choice
If the federal government began granting a subsidy of 10 cents per apple to apple growers and as a result the price of apples to consumers falls by 8 cents,
A) the actual benefit of this subsidy goes mostly to consumers.
B) the actual benefit of this subsidy goes mostly to producers.
C) the actual benefit of this subsidy would be shared equally by producers and consumers.
D) nobody would benefit from the subsidy.
Correct Answer:

Verified
Correct Answer:
Verified
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