Question

explain the concept of subsidy?​

Answer 1

A subsidy is a benefit given to an individual, business or institution, usually by the government. ... The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.

The objective of production subsidies is to expand production of a particular product more so that the market would promote but without raising the final price to consumers.

When the government gives money to a farmer to plant a specific farm crop, this is an example of a subsidy.