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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.
using the tools of an indifference curve and isoquent, highlight on consumption and production in business economics.
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