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D2 D2 (B) 0. (A) S2 S2 (D) (C) Which of the diagrams illustrates the effect of a governmental subsidy on the market for AIDS research? O A ов Oc D. S,

D2 D2 (B) 0. (A) S2 S2 (D) (C) Which of the diagrams illustrates the effect of a governmental subsidy on the market for AIDS research? O A ов Oc D. S,

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the diagrams illustrates the effect of a governmental subsidy on the market for AIDS research?
The image contains four diagrams labeled (A), (B), (C), and (D). Each diagram shows a graph with Price (P) on the vertical axis and Quantity (Q) on the horizontal axis, depicting supply and demand curves: - **Diagram A** features a supply curve (S) and two demand curves (D1 and D2), with D2 positioned further right, indicating an increase in demand. - **Diagram B** also includes a supply curve (S) and two demand curves (D1 and D2). Here, D1 is positioned closer to the origin, showing a decrease in demand. - **Diagram C** shows two supply curves (S1 and S2) and a single demand curve (D). The supply curve shifts right from S1 to S2, indicating an increase in supply. - **Diagram D** presents two supply curves (S1 and S2) and a demand curve (D). The supply curve shifts left from S1 to S2, indicating a decrease in supply. Below the diagrams, there is a question: "Which of the diagrams illustrates the effect of a governmental subsidy on the market for AIDS research?" The options provided are: - A - B - C - D In this context, a governmental subsidy would typically increase supply, shifting the supply curve to the right. Therefore, the appropriate choice would be Diagram C.
Transcribed Image Text:The image contains four diagrams labeled (A), (B), (C), and (D). Each diagram shows a graph with Price (P) on the vertical axis and Quantity (Q) on the horizontal axis, depicting supply and demand curves: - **Diagram A** features a supply curve (S) and two demand curves (D1 and D2), with D2 positioned further right, indicating an increase in demand. - **Diagram B** also includes a supply curve (S) and two demand curves (D1 and D2). Here, D1 is positioned closer to the origin, showing a decrease in demand. - **Diagram C** shows two supply curves (S1 and S2) and a single demand curve (D). The supply curve shifts right from S1 to S2, indicating an increase in supply. - **Diagram D** presents two supply curves (S1 and S2) and a demand curve (D). The supply curve shifts left from S1 to S2, indicating a decrease in supply. Below the diagrams, there is a question: "Which of the diagrams illustrates the effect of a governmental subsidy on the market for AIDS research?" The options provided are: - A - B - C - D In this context, a governmental subsidy would typically increase supply, shifting the supply curve to the right. Therefore, the appropriate choice would be Diagram C.
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