With a subsidy, the price paid by the buyers exceeds the price received by the sellers.

Question

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With a subsidy, the price received by the sellers exceeds the price paid by the buyers. The subsidy is designed to lower the cost of production for the seller, allowing them to sell their product at a lower price while still making a profit. The subsidy is usually paid by the government, and the goal is to stimulate production and consumption of the subsidized product.

With a Subsidy, the Price Paid by the Buyers Exceeds