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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can Indirect Taxes & Subsidies lead to a Shift in Supply Curve?

Author: eric_galvao



Answer:

-Indirect Tax basically Increases Costs for a Producer. -This lead to Less being Supplied and the Curve shifts to the Left. -Subsidy will Encourage Production and Reduce the Cost for the Producer, leading to more Supply and a Rightward Shift


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