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It decreases cost of production and increases supply.

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13y ago

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Illstrurate te effect od subsidy in a market by using a demand and a supply diagram?

use a demand and supply diagram to illustrate the effect of a subsidy.


What would most likely decrease the supply of oranges?

a government subsidy


How will the following will affect the supply of personal computer a a rise in wage rate b an increase in the number of seller of computer c a tax place on production of computer d subsidy?

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How do subsidies affect free trade?

A welfare loss arises from the application of the subsidy, since the subsidy creates a wedge between the optimal price (world price) and the actual price paid to domestic producers.


What is an example sentence of subsidy?

Section 8 housing is a rental subsidy.The subsidy provided $225 dollars toward burial expenses.The US government can provide subsidy monies to citizens.


How can you get a free subsidy password for your Motorola RAZR?

I don't think you can get free subsidy codes for this mode.. but you can get affordable subsidy codes from Theunlockspot.com


When a government subsidy is granted to the sellers of a product buyers can end up capturing some of the benefit?

When a government subsidy is granted to sellers, it effectively lowers their production costs, which can lead to a decrease in prices for consumers. As sellers may pass on some of the subsidy benefits in the form of lower prices, buyers can capture part of the advantage through reduced costs. Additionally, the increased supply resulting from the subsidy can enhance competition, further benefiting consumers. Thus, while the subsidy primarily aims to support sellers, buyers can also enjoy lower prices and increased availability of the product.


Can you use subsidy in a sentence?

The company needed subsidy to get their business running.


How education subsidy s different from home or car subsidy?

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Do wind turbines need subsidy?

Yes they do need subsidy they need money to build and the farmers get money for having a wind turbine in their farm they get subsidy very very high subsidy all from the tax payer


Free subsidy code for Motorola v180 please?

I don't think you can get free subsidy codes for this model.. but you can purchase affordable subsidy codes from Theunlockspot.com .


How does productivity affect supply?

no