# Econ 中四五的問題 ..thx!!

Show the effects of a subsidy on goods in a demand-supply diagram

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### 2 個解答

• 1 十年前
最愛解答

Subsidy

A subsidy is a payment from the government to a firm or individual in the private sector, usually on the condition that the person or firm that receives the subsidy produce or do something, or to increase the income of a poor person.

In this example, we will look at the subsidy from the point of view of the buyers. From their point of view, the subsidy is an increase in supply.

You really need to load this figure.

Figure 11. A Subsidy

The figure shows the subsidy shifting the supply curve to the right, from S1 to S2. The vertical distance is the amount of the subsidy: one dollar per bushel. Demand is D, as usual. With supply S1 -- before the subsidy is given -- the market equilibrium price is p1 and the equilibrium production is Q1. With supply S2 -- when the subsidy is given -- the market equilibrium price is p2 and the equilibrium production is Q2.

• 1 十年前

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