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Attempts 12 + Keep the Highest 1.2 / 2 12. Understanding subsidies Suppose that in an attempt to protect its domestic toy industry, Canada's government

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Attempts 12 + Keep the Highest 1.2 / 2 12. Understanding subsidies Suppose that in an attempt to protect its domestic toy industry, Canada's government subsidizes the production or consumption of domestically produced toys by giving each citizen a subsidy card. Each time citizens buy a domestically made toy, they swipe their cards and receive discounts of $4 off the price of a toy. The following graph represents the market for domestically made toys in Canada without any subsidy. Adjust the graph to show the effect of the $4 subsidy. Supply PRICE |Bol lars per a boy After the subsidy, the price producers receive is , and the price paid by consumers is This subsidy program costs Canada's government

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