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When a subsidy is introduced in a market, it decreases the cost of production for suppliers, shifting the supply curve downward by the amount of the subsidy. This results in an increase in supply of the item. To accurately measure this increase, each point on the supply curve should be shifted downward by the amount of the subsidy, such as $4 in this case. This means that the supply curve will physically move to the right, but it should be shifted downward to represent the change in costs for suppliers.