Private subsidies granted to producers affect
A) the supply side of the market by shifting the supply curve.
B) property rights.
C) the demand side of the market by shifting the demand curve.
D) transaction costs.
E) both the supply side of the market and the demand side of the market.

Question

Quizplus · Accepted Answer

Private subsidies granted to producers affect the supply side of the market by shifting the supply curve. This is because subsidies encourage producers to increase the quantity supplied of a good or service, which leads to a rightward shift in the supply curve, as producers are willing and able to supply more at any given price.

Private Subsidies Granted to Producers Affect