Ceteris Paribus, if the government provides subsidies on electricity bills, what would be the likely change in the market demand of desert coolers?

The provision of subsidies will enable the people to consume more electricity and those left out in the market will be able to join in with the reduced prices. Thus the market demand would increase.

Explanation

One of the major determinants of the quantity demanded of a commodity is the policies of the government. Government policy can be favourable or unfavourable for the consumers. Consumption can be influenced by taxation or subsidy scheme. When the government is providing subsidies and other incentives for the consumption of the commodity, it will be cheaper for the consumers to consume the commodities. Thus, the demand of the commodity rises. This shifts the demand curve to the right.