Question

The year 2023 was celebrated as 'International Year of Millets' and the government decided to subsidize the production of millets. In such case the supply curve will _______.

Options

• Shift to the right

• Shift to the left

• Be horizontal

• Be vertical

Answer 1

The year 2023 was celebrated as 'International Year of Millets' and the government decided to subsidize the production of millets. In such case the supply curve will shift to the right.

Explanation:

Farmers will be able to produce more at the same price since the cost of producing millets will be lower with the assistance of government subsidies. This will cause the supply curve to shift to the right.