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If a Government Wants to Encourage the Consumption of a Particular

Question 166

Multiple Choice

If a government wants to encourage the consumption of a particular good, it should enact:


A) a subsidy to buyers, as this will most greatly affect consumption of the good.
B) a subsidy to sellers, as this will increase the amount of the good that is produced and offered for sale.
C) a subsidy to buyers, as this will give the benefit to the more deserved party.
D) a subsidy on either buyers or sellers, as both will have the same effect on the market.

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