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What happens to the supply curve when a subsidy is introduced?
A
Supply shifts vertically downwards by the subsidy per unit.
B
Supply shifts horizontally leftwards by the subsidy per unit.
C
Supply remains unchanged, but demand shifts vertically downwards by the subsidy per unit.
D
Supply shifts vertically upwards by the subsidy per unit.
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3.2.2 impact and incidence of subsidies Flashcards
20 flashcards on CIE Intl A Level Economics 3.2.2 impact and incidence of subsidies: the key terms and definitions you need to recall.