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While a tax tends to create the deadweight loss, a subsidy always results in a higher economicsurplus.Hencethegovernmentshouldavoidimposingtaxesandshould always provide a subsidy in the market. Do

"While a tax tends to create the deadweight loss, a subsidy always results in a higher

economicsurplus.Hencethegovernmentshouldavoidimposingtaxesandshould

always provide a subsidy in the market". Do you agree? Illustrate with suitable market

diagrams.

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