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A tax can can correct for a negative externality and a subsidy to producers can correct for a positive externality because the tax shifts the cost

A tax can can correct for a negative externality and a subsidy to producers can correct for a positive externality because the tax shifts the cost onto the firms producing the product and (INCREASES or DECREASES) output, and the subsidy (DECREASES THE SUPPLY, DECREASES THE DEMAND, INCREASES THE SUPPLY, OR INCREASES THE DEMAND) and (INCREASES OR DECREASES? output

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