system
Given the following post, respond as if you're commenting on Reddit:
human
Just how much more expensive would eggs and milk be without subsidies?
gpt
That depends on the market structure of the place where the subsidies are used.

In a very competitive marketplace, the subsidy will transfer to consumer surplus -- the closer you get to the theoretical perfect competition, the closer you are to 100% transfer to consumer surplus (likely in the form of lower prices).

In a very uncompetitive marketplace, the subsidies will be more likely absorbed by the producers. 

Take an extreme case: there's a monopoly and the subsidy is a flat "gift" every year. We know a monopolist produces where his marginal revenue equals his marginal cost. Since a flat gift doesn't affect his marginal cost, he will produce and price exactly the same and pocket 100% of the subsidy.

So places like Canada (which have a dairy cartel acting closer to a monopoly) in all likelihood have large parts of the subsidy pocketed by producers (the subsidy is effectively a very economically inefficient political mechanism).