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Answer to Question #305451 in Microeconomics for saanvi

Question #305451

 Subsidies are inefficient since they lead to a deadweight loss. Do you agree? Use diagram to illustrate your answer


1
Expert's answer
2022-03-03T07:25:25-0500



Yes, I agree. Subsidies makes the total surplus in the market to be lower hence having the tendency to create economic inefficiency than in a free market.


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