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When government gives a subsidy to buyers of good the benefits of the subsidy flow to?
Wiki User
∙ 11y ago
It depends on a lot of factors, but generally it will go like this:
Initially it will benefit buyers and sellers, as the former is able to purchase more and the latter will receive more revenue. The cost is borne by the general public, so if you're not buying or selling you will initially be at a disadvantage.
It all comes out in the wash at the end though, and tends to be disadvantageous to all in most instances (at least according to Adam Smith).
Wiki User
∙ 11y ago
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