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Economics · Oct / Nov 2016 · Paper 12 · Question 6

2281Mixed economic system

A government subsidises the production of pineapples. This is likely to

  1. Aincrease the price of pineapples
  2. Braise the costs of supplying pineapples
  3. Craise revenue for the government
  4. Dcause the supply of pineapples to increase at every price

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Correct answer: D. cause the supply of pineapples to increase at every price

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