Cut production and lower marginal cost until it equals the lower price
Lowering cost and increase supply at all price levels
Making sure farms can feed people in case imports stop
Promising to pay off the debts of the banks and airlines
Mining, cattle ranching, growing tobacco
Adding an extra cost for each unit sold
These types of taxes are already applied to the prices of goods sold
The government increases cost
Such goods retain (keep) their value while cash loses value
subsidy
excise tax
regulation
VOCABULARY
Subsidy- a government payment that supports a business or market
Excise tax- a tax on the production or sale of a good
Regulation- government intervention that affects the production of a good