PRICE SUBSIDY Meaning and
Definition
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A price subsidy refers to a form of financial assistance provided by the government or other organizations to lower the overall cost of a product or service to consumers. The subsidy is aimed at reducing the retail price and making the product more affordable and accessible. This is typically done by offering financial aid directly to producers, manufacturers, or retailers, which enables them to offer discounted prices to consumers.
Price subsidies are commonly employed for a variety of reasons. They are often used to support essential goods or services such as food, healthcare, education, or energy, ensuring their availability to a wider population. They can also be utilized to promote specific sectors of the economy or encourage the production or consumption of environmentally-friendly products.
Price subsidies can be implemented in different ways, including direct grants or cash transfers to producers, tax breaks, reduced import duties, or government-controlled price ceilings. The amount of the subsidy and its duration can vary depending on the specific goals or economic conditions.
While price subsidies can provide short-term relief to consumers by lowering the costs of goods and services, they may have long-term consequences. They can create market distortions, including overconsumption, reduced competition, and potential inefficiencies. The financial burden of funding subsidies is typically placed on the government or taxpayers, leading to potential fiscal challenges or increasing public debt.
Overall, price subsidies are a policy tool used to support specific goods or sectors by reducing prices and making them more affordable to consumers.
Common Misspellings for PRICE SUBSIDY
- orice subsidy
- lrice subsidy
- 0rice subsidy
- peice subsidy
- pdice subsidy
- pfice subsidy
- ptice subsidy
- p5ice subsidy
- p4ice subsidy
- pruce subsidy
- prjce subsidy
- prkce subsidy
- proce subsidy
- pr9ce subsidy
- pr8ce subsidy
- prixe subsidy
- prive subsidy
- prife subsidy
- pride subsidy
- pricw subsidy
Etymology of PRICE SUBSIDY
The word "price" originated from the Old French word "pris" which means "value" or "worth". It entered English in the 13th century. "Subsidy", on the other hand, comes from the Latin word "subsidium", which means "assistance" or "support". The word "subsidium" is a combination of the prefix "sub-" meaning "below" or "under", and "sedere" meaning "to sit". Over time, "subsidium" evolved to refer to financial assistance provided by a government to support certain industries or individuals.
Therefore, the etymology of the phrase "price subsidy" is a combination of the word "price", referring to the value or worth of something, and "subsidy", indicating the financial support provided to reduce the cost or price of a product or service.
