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Does a Subsidy to Sellers Affect the Demand Curve

Question 148

Multiple Choice

Does a subsidy to sellers affect the demand curve?


A) Yes, it shifts demand up by the amount of the subsidy.
B) Yes, it shifts demand to the right by the amount of the subsidy.
C) No, the quantity demanded will increase, but the demand curve does not move.
D) No, the quantity demanded will decrease, but the demand curve does not move.

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