Economy, asked by imma3966, 10 months ago

Reduction in subsidy will effect supply side

Answers

Answered by sahilkumarsingh821
3

Explanation:

When a supply-side subsidy acts to reduce the price at which subsidised suppliers are willing to provide a certain quantity of housing, this shifts the supply curve downwards from S1 to S2. The housing market equilibrium moves from A to B, resulting in a decrease in price and increase in quantity delivered.

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