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From course:

Economics A Level

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Question:

What are the Advantages of Subsides in the Market?

Author: go kys



Answer:

-Benefit of the Goods will be Internalised, and the Price of the Good is Reduced -Subsidies can lead to Changes in Preference and make Merit Goods more Preferable as its Cheaper -Positive Externalities are still Present - Wind Farms will keep on Reducing Pollution -Subsdies can make Domestic Industries grow to a point that it can Exploit Economics of Scale and be Internationally Competitive


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go kys
go kys