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25 March, 10:36

2. If the government decided to subsidize the production of a good, the result would be a decrease in the equilibrium price and an increase in the equilibrium quantity of that good. T/F

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  1. 25 March, 11:02
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    Answer: True

    Explanation:

    The subsidy will increase the supply of the good, and therefore the supply curve will shift to the right. Then its intersection with the demand curve will be located at a lower price and with a larger quantity.
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Home » Business » 2. If the government decided to subsidize the production of a good, the result would be a decrease in the equilibrium price and an increase in the equilibrium quantity of that good. T/F
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