Final answer:
Government involvement, such as subsidies or taxes, can affect the supply curve by shifting it to the right or left.
Step-by-step explanation:
Government involvement, such as subsidies or taxes, can impact the supply curve in several ways.
If the government provides subsidies to producers, it lowers their production costs, which leads to an increase in supply. This results in a shift of the supply curve to the right.
On the other hand, if the government imposes taxes on producers, it increases their production costs. This leads to a decrease in supply and a shift of the supply curve to the left.
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