Given the demand curve for laptop computers,if the government began to encourage households to own a computer by providing a subsidy to each family that buys one,
A) both the equilibrium price and quantity of laptops will increase
B) both the equilibrium price and quantity of laptops will decrease
C) the equilibrium price of laptops will increase but the equilibrium quantity will decrease
D) the equilibrium price of laptops will decrease but the equilibrium quantity will increase
E) subsidies to households have no effect on either the supply or demand
Correct Answer:
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