Who benefits from a subsidy to sellers?

Name: Who benefits from a subsidy to sellers?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a subsidy is given to sellers, it reduces their cost of production and hence shifts the supply curve to the right. This leads to a lower equilibrium price and a higher equilibrium quantity. Depending on the elasticity of demand, buyers can benefit from a lower price, while sellers benefit from an increase in quantity sold. Hence, the benefit is shared by both sellers and buyers.

Who Benefits from a Subsidy to Sellers