Price Subsidy Subject Choice of Different Price-Sensitive Products

From the perspective of expansion of domestic demand and improvement of supply chain profit, this article studied the best state financial subsidy subject in the supply chain considering the different price-sensitivity. The main conclusion is that if subsidy impact on the demand is equal to that on the enterprises cost, for the weak price-sensitive products, the subsidy should be offered directly to consumers. On the contrary, for the strong price-sensitive products, the subsidy should be offered to the enterprises.