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When there is a $4 subsidy in the market, the supply curve shifts downward physically by the amount of the subsidy. This means that it costs less to make the item because the government is paying for part of it. This results in an increase in supply, moving the curve to the right. However, to accurately measure this increase, we need to shift the curve downward by the subsidy amount. This adjustment is made to every point on the supply curve, moving them all down by $4.