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ANEK [815]
3 years ago
9

How do subsidies generally affect the supply curve? Why?

History
2 answers:
stellarik [79]3 years ago
8 0

Effects of Supply Subsidies. When the government provides a supply-side subsidy to the producers of a product, the supply curve shifts to the right and the demand curve remains the same. Because they are being subsidized, producers are encouraged to produce more of a product and are able to do so for less.

vlada-n [284]3 years ago
8 0

Effects of Supply Subsidies. When the government provides a supply-side subsidy to the producers of a product, the supply curve shifts to the right and the demand curve remains the same. Because they are being subsidized, producers are encouraged to produce more of a product and are able to do so for less.

he effect of a specific per unit subsidy is to shift the supply curve vertically downwards by the amount of the subsidy. In this case the new supply curve will be parallel to the original. Depending on elasticity of demand, the effect is to reduce price and increase output.

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Captain John Smith had much success initially in obtaining food, farming advice, and geographical knowledge from the Powhatans. Indeed, the fact that the colony managed to survive at all was in large part due to the ability of Smith to speak and negotiate with the Indian tribes. However, by early 1609, his tactics became more aggressive and his tenure with the colony was not long, as an injury sustained in a gunpowder explosion caused him to return to England in the fall of 1609. After his departure, hostility grew between the English and the Powhatans. With the development of new settlements over the next four years, the English began pushing the Powhatans off their land, which fronted the rivers. Fighting between the groups was common, with raids on each other’s land and kidnappings. As more plantations were established along the James River after 1616, relations continued to deteriorate, with both cultures claiming use of the land.

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Have a great rest of a brainly day!</span>
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