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Does a Subsidy to Sellers Affect the Supply Curve

Question 143

Multiple Choice

Does a subsidy to sellers affect the supply curve?


A) Yes, it shifts supply vertically downward by the amount of the subsidy.
B) Yes, it shifts supply to the right by the amount of the subsidy.
C) No, the quantity supplied will increase, but the supply curve does not move.
D) No, the quantity supplied will decrease, but the supply curve does not move.

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