How does subsidy influence the supply of a good by a firm?
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Heya...
Subsidies show a positive impact on the supply of the goods...
If govt will provide subsidies to a product then it's cost of inputs become less then on it's production producer get much profit and it will increase its supply...
Subsidies show a positive impact on the supply of the goods...
If govt will provide subsidies to a product then it's cost of inputs become less then on it's production producer get much profit and it will increase its supply...
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