Practicing Success
What is the impact of providing subsidies on goods? |
It prevent prices from accurately reflecting the supply of goods. It does not affect prices of goods. It masks the scarcity of goods. Both 1 and 3 |
Both 1 and 3 |
The subsidies prevent prices from accurately reflecting the supply of goods. When goods are provided at a subsidized rate or for free, it masks their scarcity, leading to wasteful usage without concern for their availability. |