The effect of paying a subsidy for producing a good is to: increase equilibrium

Question

The effect of paying a subsidy for producing a good is to: increase equilibrium price and quantity. increase equilibrium price and decrease equilibrium quantity. decrease equilibrium price and quantity. decrease equilibrium price and increase equilibrium quantity. With normally shaped supply and demand curve the imposition of a tax on a good will result in: equilibrium price rising by the amount of the tax. equilibrium price rising by less than the amount of the tax. equilibrium price rising by more than the amount of the tax. As the slope of the demand curve becomes sleeper the relative burden of an excise (quantity) tax falls: more on the producer. more on the consumer. equally on the producer and consumer. not enough information is given. Consumer's surplus is defined as: the extra benefit a consumer gets as a result of a benefit externality. the difference between price paid and average cost. the difference between the value of a good and its price summed o

Explanation / Answer

8) b 9) a 10) b 11) c 12) a 13) c 14) b

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