Unit 2.7(2): Governments in markets - subsidies
This page covers the subsidy section of the syllabus. It includes the nature of subsidies, reasons for subsidies, how subsidies affect markets, the impact of PED and PES on subsidies, and how subsidies affect different stakeholders. A subsidy is an amount of money paid by the government to producers to encourage the consumption and production of a good or service. Examples of subsidies include those provided to...