How might subsidy affect the market for recycled materials


Problem

Many communities have launched programs to collect recyclable materials but have been unable to find buyers for the salvaged materials. If the government were to offer a subsidy to firms using recycled materials, how might this affect the market for recycled materials? Illustrate using a demand and supply diagram.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How might subsidy affect the market for recycled materials
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