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Question
A subsidy
a. is a payment made by the government to encourage consumption or production of a good or service.
b. is a payment taken by the government to discourage consumption or production of a good or service.
c. shifts the demand curve of a product.
d. is designed to decrease the available supply of a good or service.
e. raises the cost of doing business.
Answer
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What is the long-run consequence of a price ceiling law?
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