A tax increases the price paid by buyers and reduces the price received by sellers; it makes

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A tax increases the price paid by buyers and reduces the price received by sellers; it makes society worse off. In contrast, a subsidy reduces the price paid by buyers and increases the price received by sellers. True or false: Because a subsidy's effects are the opposite of a tax's effects, the subsidy must make society better off. Explain your reasoning.
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Microeconomics

ISBN: 978-1464187025

2nd edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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