Government subsidies primarily aim to lower production costs, which can lead to increased demand for __________ goods, as consumers often purchase more of these items when prices decrease.

Government subsidies are financial support from the government to help businesses reduce their production costs. When these costs go down, companies can lower their prices for goods, making them more affordable for consumers. As a result, people are likely to buy more of these goods because they can now get them at a lower price. For example, if the government gives subsidies to farmers, the price of fruits and vegetables may drop, encouraging more people to buy fresh produce. Therefore, government subsidies can significantly increase demand for these goods as consumers respond to the lower prices.