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Under a Program of Price Supports Taxpayers Are

Question 121

Multiple Choice

Under a program of price supports taxpayers are:


A) better off because as consumers they receive more at a lower price.
B) better off because as consumers they receive less, but they pay a lower price.
C) worse off because they have to provide government with the money to buy the excess supply that the subsidy produces.
D) worse off because an excess supply is created, thereby driving prices down.

Correct Answer:

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