If the government subsidizes a product, what is the relationship between the price that buyers pay (PB) and the price that sellers receive (PS)? a. PB + subsidy = Ps b. PB + Ps= subsidy O c.PB = Ps+ subsidy Od. PB (1 + subsidy) = Ps

Economics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter22: Price Takers And The Competitive Process
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If the government subsidizes a product, what is the relationship between the price that buyers pay (PB) and the price that sellers receive (PS)? a. PB + subsidy = Ps b. PB + Ps= subsidy O c.PB = Ps+ subsidy Od. PB (1 + subsidy) = Ps
If the government subsidizes a product, what is the relationship between the price that buyers pay (PB) and the
price that sellers receive (PS)?
Ca. PB+ subsidy- Ps
Ob.PB+PS subsidy
OCPB Ps+ subsidy
d. PB (1+subsidy) - Ps
Transcribed Image Text:If the government subsidizes a product, what is the relationship between the price that buyers pay (PB) and the price that sellers receive (PS)? Ca. PB+ subsidy- Ps Ob.PB+PS subsidy OCPB Ps+ subsidy d. PB (1+subsidy) - Ps
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