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When there is a subsidy in the market, it means the government gives money to producers instead of taxing them. This results in the supply curve shifting downwards by the amount of the subsidy, making it cheaper for producers to make the item. This essentially increases supply, but technically the curve moves to the right. To accurately measure the impact, the curve is shifted downwards. For example, a point at 100,10 would now be 100,6 after a $4 subsidy is applied.
