Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A government provides subsidies to solar panel manufacturers, leading to a decrease in the price of solar panels and an increase in sales of batteries used for energy storage.
B
A government imposes higher taxes on gasoline, resulting in a decline in public transportation usage.
C
A company raises its prices after receiving a government grant, leading to fewer consumers purchasing the product.
D
A natural disaster occurs, causing the price of agricultural products to rise significantly.
Understanding the Answer
Let's break down why this is correct
Answer
Government subsidies are financial support given by the government to help certain industries or sectors. For example, if the government provides a subsidy to farmers for growing corn, it lowers their production costs. This can lead to an increase in corn production because farmers can sell corn at a lower price while still making a profit. As a result, more corn becomes available in the market, which can lower prices for consumers. This change can also encourage more people to buy corn and corn products, demonstrating how subsidies can influence both supply and demand in the market.
Detailed Explanation
When the government helps solar panel makers with money, they can sell panels for less. Other options are incorrect because This option suggests that higher taxes lead to less public transport use; Here, a company raises prices after getting a grant.
Key Concepts
Government Subsidies
Market Dynamics
Consumer Behavior
Topic
Government Subsidies and Market Effects
Difficulty
medium level question
Cognitive Level
understand
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