Consider a graph illustrating the upward sloping supply curve for coffee. What would you expect to happen if the government decided to levy a 75-cents per gallon subsidy on coffee?
a. There would be a movement up along the supply curve.
b. There would be a movement down along the supply curve.
c. The supply curve would shift to the left.
d. The supply curve would shift to the right.
e. None of the above.
Ans: d. The supply curve would shift to the right.
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