If a subsidy is provided for the consumption of good X, and the subsidy is different for

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If a subsidy is provided for the consumption of good X, and the subsidy is different for different units of good X (e.g.,\($40\) subsidy on the first unit of good X and \($32\) on the second unit of good X, etc.), would the demand curve without a subsidy be parallel to the demand curve with a subsidy, as is the case in Exhibit 1? Explain your answer.

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Microeconomics

ISBN: 9781337617406

13th Edition

Authors: Roger A Arnold

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