331,392 views
0 votes
0 votes
When a government subsidy is granted to the sellers of a product, buyers can end up capturing some of the benefit because

User HowAreYou
by
2.4k points

1 Answer

8 votes
8 votes

Answer:

The market price of the product will fall in response to the subsidy.

Step-by-step explanation:

buyers can end up capturing some of the benefit because the market price of the product will fall in response to the subsidy. the market price of the product will rise in response to the subsidy.

User Justelouise
by
3.3k points