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stealth61 [152]
3 years ago
10

2. If the government decided to subsidize the production of a good, the result would be a decrease in the equilibrium price and

an increase in the equilibrium quantity of that good. T/F
Business
1 answer:
kogti [31]3 years ago
5 0

Answer: True

Explanation:

The subsidy will increase the supply of the good, and therefore the supply curve will shift to the right. Then its intersection with the demand curve will be located at a lower price and with a larger quantity.

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