A subsidy placed on the consumption of good A will likely raise the demand for good A by the amount of the subsidy.

Name: A subsidy placed on the consumption of good A will likely raise the demand for good A by the amount of the subsidy.
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Question

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By placing a subsidy on the consumption of a good, the price for the consumer decreases, making the good more affordable and attractive. This will lead to an increase in demand for the good, potentially by the amount of the subsidy.

A Subsidy Placed on the Consumption of Good a Will