Supply and Demand

It damages economic welfare because it leads towards retaliatory measures taken up against other nations.

Subsidies do not affect economic conditions much since they minimally alter the levels playing field globally speaking about trade terms and conditions.

These kinds of subsidies deteriorate national economic health over time, encouraging dependency upon governments rather than promoting self-sufficiency amongst business sectors.

It potentially improves economic welfare by supporting industries facing imperfect foreign competitions.

Domestic products become more competitive internationally

World food prices rise dramatically

Domestic consumption decreases significantly

Tariffs increase on all agricultural imports

Inflation

Elasticity

Scarcity

Opportunity cost

Few firms control the majority of market share and collaborate on pricing decisions

Only one firm offers a unique product without close substitutes

Several firms sell slightly differentiated products but engage in anti-competitive behavior

Many firms offer substitutes for consumers to choose from

Higher overall productivity in domestic industries.

Reduced variety of domestically-produced goods.

Decrease in trade deficits due to improved export numbers.

Increased unemployment in sectors where there's no comparative advantage.

Mandating equal distribution fishing rights disregards variations in individual fishers' efficiency scales.

Implementing tradable permits systems limits total use while allowing flexibility in allocation among users.

Increasing overall production quotas annually until supply meets global demand levels.

Offering tax credits proportional to quantities fished beyond sustainable levels fosters rapid industry growth.

An increase in efficiency within domestic industries due to competition.

Foreign producers gaining greater access to domestic markets.

Domestic consumers paying higher prices for protected goods.

A reduction in government revenue from decreased international trade volumes.

Firms will be incentivized to increase production of the public good due to higher competition.

Consumers will decrease their demand for the public good as it becomes more available.

The free-rider problem may be alleviated since non-excludability leads to underproduction in private markets.

Private goods will become more expensive as resources are diverted towards public goods production.

The supply of steel decreases worldwide

Domestic steel prices increase

Foreign steel producers increase their prices

Importing countries reduce tariffs on exports

It leads to an overall reduction in resource use within the economy due to efficiency gains in electric car manufacturing.

It encourages resources to be diverted towards electric car production over other industries.

Resources are moved away from electric car manufacturing toward traditional car manufacturing as it becomes relatively less costly.

The allocation remains unchanged because subsidies only affect prices, not resource distribution.