Answer: See explanation
Explanation:
A subsidy refers to the direct or indirect payment that's made to firms, which brings about increase in production and a reduction in the price of the product that's produced. It is provided by the government in order to control market failures.
Subsidies on products simply refers to the subsidies that are payable per unit of the product that's manufactured. Subsidies in products lead to the increase in supply of the product by the supplier.
