Suppose the government of Marina aims to minimize the deadweight loss of subsidy. It should:
a. provide a subsidy in a market with more inelastic demand.
b. provide a subsidy in a market with unit elastic supply
c. provide a subsidy in a market with more elastic demand.
d. provide a subsidy in a market with perfectly elastic supply.
a
Economics
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a. True b. False
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Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
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Answer the following statement true (T) or false (F)
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