A subsidy to producers will
Answer and explanation
Correct answer: B. shift the supply curve to the right
- Step 1: Lower costs let producers supply more at every price. Answer: shift the supply curve to the right. Why not the others: shift the demand curve to the right: A subsidy changes costs, not demand. shift the supply curve to the left: A subsidy lowers costs and raises supply. not shift either curve: It lowers production costs.
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