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A subsidy is the opposite of a tax, where the government gives money for producing an item. With a $4 subsidy in a market, the supply curve shifts downward, making it cheaper to produce the item. This shift increases supply, moving it to the right, but accurately measuring it requires shifting downward by the subsidy amount. Points on the supply curve, like 100,10, now become 100,6, moving them down by $4.
