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Does a Subsidy to Buyers Affect the Supply Curve

Question 160

Multiple Choice

Does a subsidy to buyers affect the supply curve?


A) Yes; the supply curve shifts up by the amount of the subsidy.
B) Yes; the supply curve shifts to the right by the amount of the subsidy.
C) No; the supply curve does not move, as quantity supplied increases instead.
D) No; the supply curve does not move, as quantity supplied decreases instead.

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