https://padlet.com/BISHumanities/fsoo3bba0spidzgi Honing your skills of DDEE en-us 2021-05-06 13:22:08 UTC 2026-03-14 03:11:03 UTC hello@padlet.com BISHumanities https://padlet.com/BISHumanities/fsoo3bba0spidzgi/wish/1498010199 2021-05-06 13:22:08 UTC https://padlet.com/BISHumanities/fsoo3bba0spidzgi/wish/1498010199 BISHumanities https://padlet.com/BISHumanities/fsoo3bba0spidzgi/wish/1498010200 The government will implement the subsidy in order to reduce the cost of production of the firm so that output can be increased in the market at a lower price so that consumers can afford the wheat at lower price. The subsidy is most likely introduced because the cost of production of producing wheat is greater than the demand thus causing a shortage of wheat into the market, so to prevent a shortage of the key commodity of wheat the government will implement a subsidy as wheat is a necessity good. ]]> 2021-05-06 13:22:08 UTC https://padlet.com/BISHumanities/fsoo3bba0spidzgi/wish/1498010200 BISHumanities https://padlet.com/BISHumanities/fsoo3bba0spidzgi/wish/1498010202 Supply shifts downwards from Q1 to Q2 as the cost of production has decreased thus increasing the supply, this also caused an extension along the demand curve from P1 to P2, thus increasing the quantity demanded. ]]> 2021-05-06 13:22:08 UTC https://padlet.com/BISHumanities/fsoo3bba0spidzgi/wish/1498010202 BISHumanities https://padlet.com/BISHumanities/fsoo3bba0spidzgi/wish/1498010205 Subsidy: Grant of money given by the government to lower the cost of production.


Necessity goods are products and services that consumers will buy regardless of the changes in their income levels, therefore making these products less sensitive to income change.]]> 2021-05-06 13:22:08 UTC https://padlet.com/BISHumanities/fsoo3bba0spidzgi/wish/1498010205