What effect do per unit subsidies have on market equilibrium for a product?

Per unit subsidies are payments made by the government to producers for each unit of a product they sell. This financial support lowers the production costs for businesses, which encourages them to produce more of the product. As a result, the supply curve shifts to the right, meaning that at every price level, producers are willing to sell more. For example, if a government gives a subsidy for each loaf of bread baked, bakeries can lower their prices, leading to an increase in the quantity of bread sold in the market. Ultimately, this can lower the market price and increase the overall quantity available, benefiting consumers with more choices and potentially lower costs.