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4. Subsidies – Subsidies have the opposite effect of taxes. A subsidy is a payment made by the government for certain actions. For Example, if the government promises to give farmers $2 for every bushel of corn they produce, the farmers will want to produce more.
Equilibrium – The point at which the quantity of a good that consumers are willing and able to buy is equal to the quantity that sellers are willing and able to produce. AKA Equilibrium Price. (Point at which the supply and demand curves intersect)