When the Purchase of a Good Is Subsidized, Economic Analysis

Multiple Choice

When the purchase of a good is subsidized, economic analysis indicates that

A) the buyers of the product will gain at the expense of the sellers.
B) the sellers of the product will gain at the expense of the buyers.
C) the buyers and sellers will benefit equally.
D) the more inelastic the supply of the good relative to its elasticity of demand, the larger the share of benefits that will accrue to the sellers of the product.