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Strike441 [17]
4 years ago
7

Agricultural subsidies _________________.

Social Studies
1 answer:
Lilit [14]4 years ago
6 0

Answer:

C) Distort the true market value of the agricultural products being subsidized

Explanation:

A subsidy is like a negative tax. Instead of increasing the price of a good from its original market value, it decreases the price. Because the price is decreased, both supply and demand for the product increase to a point different from the original market equilibrum. This distorts the economy.

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