explain by means of a graph how government can intervene in the market using sibsidies as a means to increase output
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Subsidy :- the cash that's directly given to the firm by the government to encourage production and consumption
The subsidies shift the supply curve downwards vertically creating a new supply curve that is parallel to the original.
with the help of the graph, When government subsidies are implemented for the supplier, the industry is in a position to allow its producers to produce more goods and services. This increases the overall supply of that good or service, which increases the amount demanded of that good or service and lowers the overall price of the goods or services.
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