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so now lets look at what happens when theres a subsidy now for those of you dont know a subsidy is the polar opposite of a tax so a tax is one you have to give the government money for making an item but if subsidies when the government gives you money if you make an item so lets say theres a $4 subsidy in this market now what happens is instead of the supply curve which is the cost of making the item right marginal cost instead of that being higher higher costs now its like it cost you less to make the atom because the governments paying for part of it so the supply curve moves downward physically by the amount of the subsidy now technically thats an increase in supply because its moving to the right but to measure it accurately you want to shift it downward so what were gonna do is every point were gonna move it down by the $4 so for example this point 100 comma 10 is going to now be a hundred comma six just four down this other point on the supply curve 130 comma 12 is go
