A subsidy to exporters shifts the demand curve for these products to the right.

Question

Quizplus · Accepted Answer

A subsidy to exporters typically shifts the supply curve to the right, as it effectively lowers the cost of production for exporters, allowing them to supply more at every price level. The demand curve represents consumers' willingness and ability to purchase goods at different prices and is not directly affected by a subsidy to producers.

A Subsidy to Exporters Shifts the Demand Curve for These