If government introduces a new subsidy to poultry farmers,we can expect:

Question

Quizplus · Accepted Answer

The introduction of a subsidy to poultry farmers will lower their production costs, which will result in an increase in the supply of poultry. As a result, the supply curve will shift to the right. This increase in supply will lead to a decrease in the equilibrium price of poultry, which will in turn lead to an increase in the quantity demanded of poultry. Therefore, the demand for poultry will increase.

If Government Introduces a New Subsidy to Poultry Farmers,we Can