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What are subsidies?
Almost in all market systems, government plays its role to stabilize the price of certain commodities, which are of public interest like medicines and edibles etc. For this, government give some incentives to producers to produce particular commodities, that is, to keep the supply and price of those commodities stable at certain level .These incentives, given to the producers, are known as subsidies.
Dynamic model
Research has revealed the following information about the market for Thomas chocolates; the demand schedule can be represented by the equation Qd=850 @20 dollar. The supply schedul
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