How do subsidies typically affect consumer behavior in a market?

Subsidies are financial support given by the government to help reduce the cost of goods or services. When a subsidy is provided, it usually lowers the price that consumers have to pay for a product. For example, if the government gives a subsidy to farmers, they might sell their crops for less money, making food cheaper for everyone. Because of this lower price, more people are likely to buy the product, which can increase demand. Overall, subsidies can encourage consumers to purchase more of a good or service because it becomes more affordable.