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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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