The Pandemic has made chicken more expensive, in order to offset this effect to consumers, government subsidized the price of chickens by a per-unit subsidy. If it wants to study the substitution effect of this subsidy, the government should imposed a Lump-sum tax. True False

The Pandemic has made chicken more expensive, in order to offset this effect to consumers, government subsidized the price of chickens by a per-unit subsidy. If it wants to study the substitution effect of this subsidy, the government should imposed a Lump-sum tax.

False

Explanation:

The government should have imposed a lump-sum subsidy if it really wanted to study the substitution effect of the subsidy instead of imposing a lump-sum tax.  This subsidy should be granted to chicken farmers to reduce their production costs, which will in turn reduce the cost of chicken to the consumers.  A lump-sum tax sounds like a contradictory effort to offset the high cost of chicken on the consumers.

it is d i just took the test

the correct answer is d. wealthy colonists to take care of the less fortunate. hope this