Question

what are the effects of subsidies on price , production, market , motivation and trade ? explain ​

Answer 1

Answer:

to distort supply & demand from the price and quantity produced that would be most efficient for the economy as a whole, given Pareto Efficiency Theory, the core of the basis for advocating free-markets

Explanation:

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Answer 2

Subsidies make those goods cheaper to produce than in foreign markets. This results in a lower domestic price. Both tariffs and subsidies raise the price of foreign goods relative to domestic goods, which reduces imports.

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