Question
What is a supply schedule? What is the effect on the supply of a good when Government gives a subsidy on the production of that good? Explain.
Solution
Supply schedule is a table or schedule that illustrates the alternative quantities of a commodity supplied at different prices. If the data from the table is charted, it is known as a supply curve.
Example for a supply schedule:
| Price | Quantity Supplied |
| 100 | 2000 units |
| 110 | 2500 units |
| 120 | 3000 units |
When government gives subsidy for production, the revenue increases. When the Cost remains the same, profits rise, and as a result supply increases.
