Economy, asked by khushirai, 1 year ago

Why is subsidy called a financial help to producer not to consumer?

Answers

Answered by Abdealivilla
1
subsidy is called financial help to the producer because if the goverment will provide subsidy the price of the commodity will be reduce as a result the consumer will buy it more frequently than other products

khushirai: so why is it not called financial help to consumer as he will get it at less price??
Abdealivilla: because shopkeeper has more benefit than the consumer because it is a fixed income of him
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