How do government subsidies typically affect the market for complementary goods?

Government subsidies are financial support provided by the government to help certain industries or products. When a subsidy is given to one good, it often lowers the price of that good, making it more affordable for consumers. For example, if the government subsidizes electric cars, the price of electric cars may drop. Since electric cars and charging stations are complementary goods (they are used together), the lower price of electric cars can lead to an increase in demand for charging stations. As more people buy electric cars, the need for charging stations grows, benefiting both markets.