Difference between a tax and a subsidy?
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what is the difference between a tax and a subsidy? and 2 examples of each (4got to do my homework :$) PLEASE HELP
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Answer:
Taxes and subsidies change the price of goods and, as a result, the quantity consumed. The impact of a tax or subsidy on a protected monopoly is dealt with elsewhere. ... The difference between Pt and Pt is equal to the amount of the tax.
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