If an Equal-Cost Lump-Sum Transfer Were Substituted for a Per

Multiple Choice

If an equal-cost lump-sum transfer were substituted for a per unit excise subsidy on good X:

A) the consumption of X under the excise subsidy would be higher and the consumer would be on a higher indifference curve.
B) the consumption of X under the excise subsidy would be higher,but the consumer would be on the same indifference curve.
C) the consumption of X under the lump-sum transfer would be higher and the consumer would be on a higher indifference curve.
D) the consumption of X under the lump-sum transfer could be higher,but the cost of the transfer would be higher.