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If the Government Provides a Subsidy to Producers,what Is the Effect

Question 256

Multiple Choice

If the government provides a subsidy to producers,what is the effect of this policy in a supply and demand diagram?


A) The demand curve shifts leftward and the price rises.
B) The supply curve shifts rightward and the price falls.
C) The supply curve shifts leftward and the price falls.
D) The supply curve shifts leftward and the price rises.
E) The demand curve shifts rightward and the price rises.

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