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An Excise Subsidy Given on Each Unit of X Consumed

Question 44

Multiple Choice

An excise subsidy given on each unit of X consumed will:


A) reduce consumption of X and lower total expenditures on X.
B) shift the budget line inward in a parallel manner.
C) place the consumer on a higher indifference curve.
D) cause the consumer to increase consumption of non-subsidized goods.

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