Does a Subsidy to Buyers Affect the Demand Curve

question 90

Multiple Choice

Does a subsidy to buyers affect the demand curve?

• A) Yes, it shifts demand up by the amount of the subsidy.
• B) Yes, it shifts demand to the right by the amount of the subsidy.
• C) No, the quantity demanded will increase, but the demand curve does not move.
• D) No, the quantity demanded will decrease, but the demand curve does not move.

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