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Refer to the Provided Supply and Demand Graph

Question 208

Multiple Choice

Refer to the provided supply and demand graph. S1 and D1 represent the current market supply and demand, respectively. S2 and D2 represent the socially optimal supply and demand. One way that The government could shift demand to its socially optimal level is to A) tax the sellers. B) tax the buyers. C) subsidize the sellers. D) subsidize the buyers. Refer to the provided supply and demand graph. S1 and D1 represent the current market supply and demand, respectively. S2 and D2 represent the socially optimal supply and demand. One way that
The government could shift demand to its socially optimal level is to


A) tax the sellers.
B) tax the buyers.
C) subsidize the sellers.
D) subsidize the buyers.

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