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Subsidies
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Subsidies
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6. Introduction to Taxes and Subsidies / Subsidies / Problem 4
Problem 4
Why does a subsidy result in different prices for buyers and sellers?
A
The government imposes a price ceiling, reducing the price for buyers
B
The government pays part of the price, allowing sellers to receive more than buyers pay
C
The government imposes a price floor, increasing the price for sellers
D
The market naturally adjusts prices without government intervention
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