Subsidies Simulator
The government can protect domestic producers by providing a per unit subsidy payment to producers. This shifts the supply curve to the right, resulting in a lower price and higher production. However, the cost of the subsidy is very high, namely the vertical distance between the two curves times quantity.

Change subsidy

 

Price:


Subsidy per unit:


Subsidy cost:











The amount of the subsidy per unit is the vertical distance between the green and red lines.