That's wrong, price doesn't shift the demand curve, it only causes movement along the demand curve. (a change in quantity demanded not a shift in demand itself), it may cause shifts in the demand for other products (lower price for milk means less people buying coke) but the application of a subsidy should not shift supply or demand any more than the application of tax.
That's wrong, price doesn't shift the demand curve, it only causes movement along the demand curve. (a change in quantity demanded not a shift in demand itself), it may cause shifts in the demand for other products (lower price for milk means less people buying coke) but the application of a subsidy should not shift supply or demand any more than the application of tax.
luemas666 9 months ago