If there is a subsidy paid for the production of a good, that subsidy goes to producers, and it increases, which will result in an increase in product demand.
A subsidy is money that is given to industries or any company to help keep the service or product available at on reasonable price. Subsidies are important to development because they allow for vital resources to remain available despite the financial burden placed on the provider.
we can take the Example of Gas Cylinder in which our Central government provides Subsidy by refunding some money in his/her bank to their customer.
Subsidy is a payment from the government to private entities, usually to ensure firms stay in business and protect jobs.
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