Market Equilibrium: Market equilibrium occurs when the quantity demanded equals the quantity supplied at a specific price level. It represents a balance between buyers' desires and sellers' offerings.
Elasticity of Supply: Elasticity of supply measures how responsive quantity supplied is to changes in price. If supply is elastic, it means that even small price changes lead to significant shifts in quantity supplied.
Subsidy: A subsidy is a payment or financial assistance provided by the government to producers, which helps reduce their costs of production and encourages increased supply.