Economy, asked by rohan346644, 5 months ago

How does government subsidy affects the supply curve ?

Answers

Answered by BeccarPexity

2

Answer:

A subsidy is an amount of money given directly to firms by the government to encourage production and consumption. The effect of a specific per unit subsidy is to shift the supply curve vertically downwards by the amount of the subsidy. ... In this case the new supply curve will be parallel to the original. aap ko

Answered by bts1169

4

Explanation:

How does government subsidy affects the supply curve?

A subsidy is an amount of money given directly to firms by the government to encourage production and consumption. The effect of a specific per unit subsidy is to shift the supply curve vertically downwards by the amount of the subsidy. ... In this case the new supply curve will be parallel to the original.

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