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Is the following statement True, False or Uncertain. Explain your reasoning. The government decides to promote demand for electric cars by offering a subsidy that
Is the following statement True, False or Uncertain. Explain your reasoning.
The government decides to promote demand for electric cars by offering a subsidy that lowers the out-of-pocket cost of buying an electric car. If an electric car purchaser would have bought the exact same electric car even without the subsidy, then the consumer's budget constraint and utility are unchanged by the subsidy
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