A subsidy granted to an import-competing producer shifts its supply schedule outward to the right.

Name: A subsidy granted to an import-competing producer shifts its supply schedule outward to the right.
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A subsidy granted to a producer would increase their profitability, allowing them to produce more and shift their supply schedule outward to the right. This would have an effect on the market price and quantity demanded, as shown in Figure 5.6.

A Subsidy Granted to an Import-Competing Producer Shifts Its Supply