A subsidy is

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    a payment that acts as a negative tax to reduce the buyers price in order to increase the quantity demanded..
     a payment that reduces the market price and quantity supplied of a good by the seller.
     a payment that reduces the buyers price to below the sellers price.e.
     Numbers 1 and 3.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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Numbers 1 and 3.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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