单选题
The cash price consumers pay for a product is most likely to increase as the result of a: A. government subsidy to product producers. B. quota on how much of the product can be produced. C. new law imposing high penalties for sales of the product.
【正确答案】
C
【答案解析】A subsidy will increase supply and decrease the price to consumers. A quota may or may not increase the price to consumers depending on if it is above or below the current equilibrium output. A new law imposing penalties for consuming the product will decrease demand and decrease the equilibrium price. A new law imposing high penalties for selling the product will decrease supply, leading to a higher equilibrium price.