How does subsidy influence the supply of a good by a firm?
Subsidy can be said as an help from the government !
For example if the gas cylinder costs 900 and consumer pays only 450 then the rest 450 is a subsidiary set by the government which the government pays !
Subsidy makes the increase in the supply of a good in the market !
For example if the gas cylinder costs 900 and consumer pays only 450 then the rest 450 is a subsidiary set by the government which the government pays !
Subsidy makes the increase in the supply of a good in the market !
