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Influence of subsidy on good

Assume that the market for a good is initially in equilibrium, and then the govt. places a subsidy on good. The probable result would be: (i) Raised production and purchases of good. (ii) That buyers would pay big prices for the good. (iii) Extended scarcity of the good. (iv) Reduced production and purchases of good. (v) Prolonged excesses of the good.

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