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The Fact That Price Subsidies Reduce Economic Surplus Implies That

Question 152

Multiple Choice

The fact that price subsidies reduce economic surplus implies that:


A) we can find an alternative policy that will make both the rich and the poor better off.
B) price subsidies help the rich but not the poor.
C) price subsidies are not effective at lowering prices.
D) the quantity bought and sold in the market will fall.

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