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Suppose That a Per-Unit Subsidy Is Granted to Each Individual

Question 24

Multiple Choice

Suppose that a per-unit subsidy is granted to each individual who consumes a product providing external benefits to society at large. Each individuals demand curve will shift ________, and the market demand curve for the product will shift ________.


A) to the right; to the right
B) to the right; to the left
C) to the left; to the left
D) to the left; to the right

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