Other things equal, the provision of a per unit subsidy for a product will:

Name: Other things equal, the provision of a per unit subsidy for a product will:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A per unit subsidy will decrease the cost of production, thus increasing the profitability of producing the product. This will encourage suppliers to increase their supply of the product to take advantage of the subsidy. Therefore, the provision of a per unit subsidy for a product will increase its supply.

Other Things Equal, the Provision of a Per Unit Subsidy