Subsidies? (1 Viewer)

[Yoko Hono]

Hi. I was wondering whether anyone could tell me whether a subsidy would shift a domestic supply curve to the right. I thought it would but the true or false questions on the NSW HSC online site says that it doesn't. Thanks.

 

[nick1048]

a subsidy would increase supply not demand for a good...

 

[roadcone]

a subsidy will increase supply

 

[Yoko Hono]

Thanks for that. I thought it would - I just got confused when the NSW HSC online site said it didn't. Thanks for clearing that up. Its greatly appreciated.