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A Fixed-Quantity Subsidy Differs from Food Stamps in That

Question 2

Multiple Choice

A fixed-quantity subsidy differs from food stamps in that:


A) the fixed-quantity provides a minimum quantity that can be supplemented by additional consumer purchases while additional quantities cannot be purchased with food stamps.
B) the fixed-quantity subsidy increases consumer welfare more than food stamps.
C) the fixed-quantity subsidy cannot be supplemented by additional purchases while the consumer can purchase additional quantities with food stamps.
D) the fixed-quantity subsidy cannot move consumers to a higher indifference curve unlike food stamps.

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