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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.
Static and dynamic multgipier
Explanation
COBWEB MODEL: Concept of dynamic stability: A market equilibrium is said to dynamically stable only when disequilibrium price and quantity move and over time reach to any eq
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