Subsidies: Governments can provide subsidies to businesses that are most affected by the supply shock. For example, if a sudden rise in the price of oil is causing higher transportation costs, governments can provide subsidies to help offset those costs. Explain that graphically please.

Economics Today and Tomorrow, Student Edition
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ISBN:9780078747663
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Chapter7: Demand And Supply
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Subsidies: Governments can provide subsidies to businesses that are most affected by the supply shock. For example, if a sudden rise in the price of oil is causing higher transportation costs, governments can provide subsidies to help offset those costs.

Explain that graphically please.

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