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1) Ceteris paribus, to cater for the increase in the demand for hybrid cars, the government has increased the subsidy provided to hybrid car manufacturers.
1) Ceteris paribus, to cater for the increase in the demand for hybrid cars, the government has increased the subsidy provided to hybrid car manufacturers. Use demand and supply analysis to graphically represent and explain the impact on price and quantity in the market for hybrid cars. (HINT: there is more than one possibility to the changes in price and quantity).
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