 The end result is that the lower price that consumers pay and the higher price that producers receive will be the same, regardless of how the subsidy is administered.Depending on the price elasticities of demand and supply, who bears more of the tax or who receives more of the subsidy may differ.Where the supply curve is less elastic than the demand curve, producers bear more of the tax and receive more of the subsidy than consumers as the difference between the price producers receive and the initial market price is greater than the difference borne by consumers.