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< Completed 29 out of 29 Question 27 of 29 > The U.S. government has subsidized ethanol production since 1978. With the advent of

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< Completed 29 out of 29 Question 27 of 29 > The U.S. government has subsidized ethanol production since 1978. With the advent of affordable electric cars, policymakers are considering whether to allow the subsidy to expire. The accompanying graph represents the market for ethanol. Move the supply and/or demand curves to show how reducing the subsidy will affect the ethanol market. Market for Ethanol Equilibrium price increases O decreases. Omay increase or decrease, but it is impossible to know for sure. Oremains constant. Equilibrium quantity increases may increase or decrease, but it is impossible to know for sure. decreases. remains constant. 80 73 F4 14 35 16 8 = 7 57 Pripr Dill FR 8 9 8 Quantity 930 Submit All

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