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There is no relation to the supply curve. Because there is no change in the price at which the product is purchased from producers. Demand shifts of course (th
by anovikov 14y ago
There is no relation to the supply curve. Because there is no change in the price at which the product is purchased from producers.
Demand shifts of course (the overall price of the product drops because the stuff that wasn't supposed to make it to the market gets there, but free stuff disappears -> structure changes).
- intended 14y agoAh yes, got it, you are correct. Thank you. The supply curve is the amount of goods produced at x price. Since x isn't being changed here for sellers, it doesn't move. The demand curve does move because of the distorting effects of the subsidy/PDS, and then again because of corruption.