Which of the Following Generalizations About the Benefit of a Subsidy

Multiple Choice

Which of the following generalizations about the benefit of a subsidy is correct?

A) The more inelastic the supply of a product, the larger the portion of the benefit will be to buyers.
B) The more inelastic the demand for a product, the larger the portion of the benefit will be to buyers.
C) The more elastic the supply of a product, the smaller the portion of the benefit will be to buyers.
D) The distribution of the benefit of a subsidy is not affected by the elasticity of the supply and demand for the product for which the subsidy is granted.