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5. (20 pts) Explain what is a price distorting subsidy. Provide an example and discuss about the efficiency of the outcome in presence of a

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5. (20 pts) Explain what is a "price distorting subsidy". Provide an example and discuss about the efficiency of the outcome in presence of a price distorting subsidy. Are there any alternative policy instruments that would lead to better outcomes? You can illustrate your arguments by using a graph

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