Key Diagrams - Producer Subsidies (Supply and Demand Analysis)
- AS, A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 23 Apr 2022
In this revision video we work through the basic analysis of a producer subsidy using supply and demand curve analysis.
Be prepared to analyse the effects of a subsidy on consumer welfare using the concept of consumer surplus in your supply and demand diagram. Subsidies are common and invite exam questions where you are asked to evaluate the benefits and costs ofsubsidies both for advanced and emerging /developing countries.