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Does a Subsidy to Sellers Affect the Demand Curve

Question 164

Multiple Choice

Does a subsidy to sellers affect the demand curve?


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

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