A subsidy paid to the sellers of coffee will:

Name: A subsidy paid to the sellers of coffee will:
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

When a subsidy is paid to sellers, the supply of coffee will increase (shift to the right) since it is now cheaper for sellers to produce and sell coffee. As a result, the equilibrium quantity of coffee will increase, but the equilibrium price will decrease. This is because there is now an excess supply of coffee, and sellers must lower the price in order to sell all of their product.

A Subsidy Paid to the Sellers of Coffee Will