Which of the following are the effects of a subsidy to producers? More than one answer may be correct.单项选择题

A

The quantity of the product increases to the economically optimal quantity, eliminating the overallocation of resources.

B

The subsidy reduces the marginal cost of producing the good.

C

The supply curve shifts to the right because of an increase in supply.

D

The supply curve shifts to the left because of a decrease in supply.

E

The quantity of the product increases to the economically optimal quantity, eliminating the underallocation of resources.

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