The influence of a resource subsidy on predator-prey interactions is examined using a mathematical model. The model arises from the study of a biological system involving arctic foxes (predator), lemmings (prey), and seal carcasses (subsidy). In one version of the model, the predator, prey and subsidy all occur in the same location; in a second version, the predator moves between two patches, one containing only the prey and the other containing only the subsidy. Criteria for feasibility and stability of the different equilibrium states are studied both analytically and numerically. At small subsidy input rates, there is a minimum prey carrying capacity needed to support both predator and prey. At intermediate subsidy input rates, the predator and prey can always coexist. At high subsidy input rates, the prey cannot persist even at high carrying capacities. As predator movement increases, the dynamic stability of the predator-prey-subsidy interactions also increases.