In economic analysis, we adjust market prices to reflect the amount of any subsidy. Since subsidy reduces input costs, then we must add subsidy to market price of the commodity. If the subsidy operates to raise prices, then in economic analysis we deduct the amount of subsidy from the market value of the product before entering in our economic analysis.
Food Retail
Economic analysis
J
EntrepreneurJohnLocationKapkochur, KenyaProject status
100%funded
$4raised
Disbursedon December 7, 2018
In economic analysis, we adjust market prices to reflect the amount of any subsidy. Since subsidy reduces input costs, then we must add subsidy to market price of the commodity. If the subsidy operates to raise prices, then in economic analysis we deduct the amount of subsidy from the market value of the product before entering in our economic analysis.