What is a SUBSIDY Subsidies EXPLAINED
#############################
Video Source: www.youtube.com/watch?v=h-LBs7c8k7E
A subsidy is a form of TRADE PROTECTION (protectionism) that helps produce supply more at lower cost. • The government helps to SUBSIDISE the costs of production...which allows domestic producers to produce more. And steal market share from foreign producers!! • Subsidy graph: 0:40 to 3:43 • Economic effects of subsidy: 3:43 onwards
#############################