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Match govt rules: 1. State: p. Intervene 2. Taxes: q. Add cost 3. Grant: r. Cut cost

A1-p, 2-q, 3-r
B1-p, 2-r, 3-q
C1-q, 2-p, 3-r
D1-r, 2-p, 3-q
Answer & Solution
Correct answer: A. 1-p, 2-q, 3-r
Government interventions like taxes increase production costs while subsidies lower costs to support supply.
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