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 D₁ 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 D₁ to D₂.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
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